Purchase Solution

Long-Term Financing/ Dividend Policy and Retained Earnings

Not what you're looking for?

Ask Custom Question

Why is the cash position of a company important, when deciding to create a dividend policy?

Attachments
Purchase this Solution

Solution Summary

This post discusses why is the cash position of a company important, when deciding to create a dividend policy.

Solution Preview

The cash position of a company is an important factor when deciding to create a dividend policy. The amount of dividend paid by the company may have positive or negative information content for the stock market. Therefore, a company would like to pay more dividends to send positive signals to the market. However, the company would like to retain a substantial portion of the earnings of ...

Purchase this Solution


Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.