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Forecasting dividends requires forecasting the firm's earnings, dividend payout rate, and future share count. True or False

1 Answer

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Final answer:

True. Forecasting dividends does require forecasting the firm's earnings, dividend payout rate, and future share count.

Step-by-step explanation:

True.

Forecasting dividends does require forecasting the firm's earnings, dividend payout rate, and future share count. These three factors are important in determining the amount of dividends a company will distribute to its shareholders. By analyzing historical financial data, market trends, and industry forecasts, financial analysts can make informed predictions about a company's future performance and calculate the expected dividends.dividends.

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