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OpenStudy (anonymous):
how does dividend policy decision affect investing decision?
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OpenStudy (anonymous):
Dividend policy is a key financial indicator. By this, firms signal its investment options or the lack of it. If the firms are in growth sector they are expected to have a lot of investment opportunities and therefore they are not expected to give dividends. In mature firms where the investment opportunities might slow down therefore firms give out bigger share of profits are dividends. Hope that helps. SM.
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