Can a wrong dividend policy bankrupt a firm

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Cash dividends reduce cash and retained earnings (and liquidating dividends may also reduce paid-in capital). A regular cash dividend is a cash payments made directly to stockholders, usually each quarter. Extra cash dividend is an indication that the "extra" amount may not be repeated in the future. Special cash dividend is similar to extra dividend, but definitely will not be repeated. Liquidating dividend is when some or all of the business has been sold.

Can a wrong dividend policy bankrupt a firm?

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Reference no: EM131627341

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