Multiple Choice
A company is experiencing good profits. What two factors might lead directors to avoid large dividend rises?
A) The risk of having to further increase dividends in future if profits fall
B) The effect on shareholders of loss of stability and predictability
C) The risk of having to reduce dividends in future if profits fall
D) Because it reduces the profitability of future projects
Correct Answer:

Verified
Correct Answer:
Verified
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