Question

In: Finance

Historically firm financial managers predominately feel that: a. dividends should be increased annually no matter what...

Historically firm financial managers predominately feel that:

a. dividends should be increased annually no matter what

b. the personal taxes of their shareholders must be their primary consideration when setting dividend policy

c. once a dividend is increased, it should not be decreased

d. dividends should be flexible and adjusted annually in response to changes in the firms earnings

e. dividend smoothing is talked about but rarely affects dividend decisions

Solutions

Expert Solution

c. once a dividend is increased, it should not be decreased

As decrease dividend will show the negative impact for the company


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