Thedividendpolicymustbeformulatedconsideringtwobasicobjectives,namely
A. delayingthetaxliabilityofthestockholderandinformationcontent.
B. maximizingshareholderwealthanddelayingthetaxliabilityofthestockholder.
C. maximizingshareholderwealthandprovidingforsufficientfinancing.
D. maintainingliquidityandminimizingtheweightedaveragecostofcapital.
Answer:C
Thedividendpolicymustbeformulatedconsideringtwobasicobjectives,namely
A. delayingthetaxliabilityofthestockholderandinformationcontent. B. maximizingshareholderwealthanddelayingthetaxliabilityofthestockholder. C. maximizingshareholderwealthandprovidingforsufficientfinancing. D. maintainingliquidityandminimizingtheweightedaveragecostofcapital.