Respuesta :
When compiling a pro forma statement, dividend policy most directly affects the projection of the retained earnings account balance.
A Dividend Policy: What Is It?
A company's dividend payout to shareholders is governed by a dividend policy. Theoretically, according to some experts, the dividend policy is meaningless because investors can sell a piece of their stock portfolio or shares if they need money. The dividend irrelevance theory contends that dividend payments have no impact on stock prices.
A Dividend Policy's Operation.
The dividend policy is income for shareholders, notwithstanding claims to the contrary. A hefty dividend policy benefits everyone, although company executives are frequently the biggest stockholders.
The majority of businesses see a dividend policy as being fundamental to their corporate strategy. The time, size, and other aspects that affect dividend distributions must all be decided by management. There are three different kinds of dividend policies:
- residual dividend policy
- constant dividend policy, and
- stable dividend policy.
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