[amp_mcq option1=”liberal” option2=”formal” option3=”strict” option4=”Varying” correct=”option1″]<\/p>\n
The correct answer is: A. liberal<\/p>\n
A liberal dividend policy is a policy in which a company pays out a large portion of its earnings in dividends. This policy is often used by companies that have easy access to the capital markets, as they can easily raise additional funds if they need them.<\/p>\n
A formal dividend policy is a policy in which a company sets a specific amount of dividends to pay out each year. This policy is often used by companies that want to maintain a consistent dividend stream for their shareholders.<\/p>\n
A strict dividend policy is a policy in which a company pays out a very small portion of its earnings in dividends. This policy is often used by companies that want to conserve their cash for investment or other purposes.<\/p>\n
A varying dividend policy is a policy in which a company pays out different amounts of dividends in different years. This policy is often used by companies that want to be flexible in their dividend payments.<\/p>\n
In the case of a company having easy access to the capital markets, a liberal dividend policy is the most appropriate option. This is because the company can easily raise additional funds if it needs them, so it does not need to conserve its cash by paying out a large portion of its earnings in dividends.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”liberal” option2=”formal” option3=”strict” option4=”Varying” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-50240","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n