Question

The dividend policy must be formulated considering two basic objectives, namely ________. delaying the tax liability of the stockholder and information content maximizing shareholder wealth and maintaining liquidity maximizing shareholder wealth and providing for sufficient financing maintaining liquidity and minimizing the weighted average cost of capital

Answer 1

The dividend policy must be formulated considering two basic objectives, namely maximizing shareholder wealth and providing for sufficient financing.

A dividend is defined as an amount of money paid by a company to its shareholders out of their provides. The main goals is that it gives the shareholders the most value for their time/money.. the shareholders want a large return. Also, the company wants to make sure they have enough profit/cash on hand to have a large financing amount.