Dividend Policy
Dividend is the part of EAT (Earning after tax) which is paid to the shareholders as their share in profits of the company. There are not legal rules and regulation about dividend policy of company. Dividend policy of a company depends on various factors like availability of cash, stage of the company life cycle, market trends, future investment requirements etc. A finance manager should be very aware about the various aspects that affect the dividend policy of the company.
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