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Q. Explain Dividend Policy Decision?
Dividend Policy Decision: - The financial management has to make a decision as to which portion of the profits is to be distributed as dividend among shareholders and which portion is to be retained in the business. For this reason the financial management must take into consideration the factors of bonus shares, dividend stability and cash dividends in practice.
What is capital rationing? Should a firm practice capital rationing? Why? Capital rationing is the practice of putting dollar limits on what will be invested in new capital bud
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Evaluate the importance of leverage of financial management on a small scale company.
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