What legal constraints limit the amount of cash dividends

Reference no: EM131336802

1. What legal constraints limit the amount of cash dividends that may be paid by a firm?

2. What aspects of U.S. tax laws tend to (a) encourage and (b) discourage large dividend payments by corporations? Explain how.

3. What other "external" factors limit a firm's ability to pay cash dividends?

Reference no: EM131336802

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