Dividend decision is affected by many factors. Identify the factors affecting dividend decisions.

(a) State of Capital market

(b) Control Consideration

(c) Shareholder's Preference

(d) Taxation Policy

(e) Floatation Cost

Choose the most appropriate answer from the options given below :

(c) and (d) only

Factors affecting dividend decision are : Amount of Earning, Stability in Earnings, Stability of Dividends, Growth Opportunities, Cash Flow Position, Shareholders’ Preference, Taxation Policy, Stock Market Reaction, Access to Capital Market, Legal Constraints and Contractual Constraints.