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Q. Explain a variety of factors determining Dividend Policy?
Dividend: - Dividend demotes to that part of net profits of a company which is distributed between shareholders as a return on their investment in the company. Dividend is paid on preference and equity shares of the company. On preference shares dividend is rewarded at a predetermined fixed rate.
However decision of dividend on equity shares and dividend is taken for each year separately. A established approach for the payment of dividend is known as dividend policy. Therefore the dividend policy divides the net profits or earnings after taxes into two parts:
(1) Earnings to be dispersed as dividend
(2) Earnings reserved in the business.
Mathematical Property The sum of the deviations of the items from median, ignoring signs, is the least. For example, the median of 6, 10, 14, 18 and 22 is 14. The deviations fr
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