Question

Investors expectations of dividend are mainly based on

Answer 1

Answer:

Expenses from previous years are also irrelevant. To recap, relevant costs are the future costs that will differ among alternatives. You might use the past costs to help you predict those future costs, but the past costs are otherwise irrelevant to the decision.

Answer 2

Internal Factors:

Company board may decide to pay dividends from Retained Earnings, which is always legal. In some regions, it is also legal to pay dividends from the excess of par value(value per share assigned in the corporate charter). Board of directors may decide on the amount of dividend payments.