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6. Which of the following situation of a particular firm allows increased dividend payout ratio A. Strong capital impairment rule B. Higher possibility for external financing C. Need of additional finance in the firm D. Restrictive debt contract​

User Skr
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Of the options presented, the situation that would allow for an increased dividend payout ratio is likely to be B: Higher possibility for external financing. This means that the firm has access to external sources of funding that can be used to support dividends without having to rely solely on profits or accumulated earnings. This can be especially beneficial when the firm is looking to reward shareholders or attract new investors. However, it is important to note that the specific circumstances of each firm will ultimately determine the most appropriate dividend policy.
User Lborgav
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