The factors involved in setting a dividend policy include all of the following EXCEPT
A. restrictive covenants in a bond indenture.
B. growth prospects.
C. the legal prohibition on paying dividends which exceed current earnings.
D. capital impairment restrictions.
Answer:C
The factors involved in setting a dividend policy include all of the following EXCEPT
A. restrictive covenants in a bond indenture. B. growth prospects. C. the legal prohibition on paying dividends which exceed current earnings. D. capital impairment restrictions.