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Dividend policy of a company may affect dividend signalling when?

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Finance

Dividend policy of a company may affect dividend signallingwhen?

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Dividend Policy is the policy followed by a company with respect to dividend payouts in the long run In the case of established companies investors can have a fair idea of the dividend income they will earn year after year by following the dividend policy Generally there are three types of policies for dividend payouts 1 Stable Dividend Policy In this case the amount of dividend per share will be stable and constant over a period of time While this policy enables the investor to anticipate his dividend income with a fair degree of certainty this suffers    See Answer
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