Question

Dividend payment linked to profits left out after meeting the expansion needs is based on ....theory policy? a)Signalling Theory b)Residual payout policy c)Stable dividend policy d)Constant payout policy

Answer 1

"Dividend policy is set of guidelines which a company use to decide its earnings it would pay to share holders.

Profit approach is lot of rules an organization uses to choose the amount of its income it will pay out to investors.

There are basically four different dividend policy types

1. "Regular dividend policy"

2. "Stable dividend policy"

3. "Irregular dividend policy"

4. "no dividend""