BUSINESS FINANCE II (İŞLETME FİNANSI II) - (İNGİLİZCE) Dersi Payout (Dividend) Policy soru detayı:

CEVAP:

A company that uses this policy pays out a constant percentage of its earnings as dividends. Although the dividend to earnings ratio is stable, the amount of dividend varies year to year when profit changes. Due to uncertainty on expected dividends each year, the cost of capital will increase; hence, the company’s stock price will decrease.