Divident Policy Theory Notes By Simplifiedstudyofficial 1. Define dividend policy? Or What is dividend policy?who takes divident decision ? Or what do you mean by good dividend policy? Ans. Dividend Policy involves the decisions whether_ 1.to distribute earnings in the form of divident anong shareholders ,or 2. to retain earnings for reinvestment in the business 3. to retain some earnings and to distribute the remaining earning . The main objective of a company is to shareholders . The company should therefore, follow such a dividend policy which ensur...
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