Identify the factors which affect the dividend decision.

A. Stock market Reaction.

B  Floatation Cost

C.Legal Constraints

D. Fixed operating cost

E. Cost of equity

Choose the correct answer from the options given below:

 A and C only

Factors Affecting Dividend Decision : Amount of Earnings, Stability Earning, Stability of Dividends, Growth Opportunities, Cash Flow Position, Shareholders’ Preference, Taxation Policy, Stock Market Reaction, Access to Capital Market, Legal Constraints and Contractual Constraints.