Question: State the significance of stability of dividend.
Answer: Following is the significance of stability of dividend: 1. Confidence among shareholders 2. Investors desire for current income 3. Institutional investor's requirements 4. Stability in market price of shares 5. Raising additional finances 6. Spreading of ownership of outstanding shares 7. Reduces the chances of loss of control 8. Market for debentures and preference shares
Question:
State the significance of stability of dividend. Answer:
Following is the significance of stability of dividend: 1. Confidence among shareholders 2. Investors desire for current income 3. Institutional investor's requirements 4. Stability in market price of shares 5. Raising additional finances 6. Spreading of ownership of outstanding shares 7. Reduces the chances of loss of control 8. Market for debentures and preference shares Source: CoolInterview.com
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