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Which of the following will NOT increase a company's total dividend payments? A. Issue more shares....

Which of the following will NOT increase a company's total dividend payments?

A. Issue more shares.

B. Increase earnings.

C. Increase dividend payout rate.

D. None of the above

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Homework Answers

Answer #1

Ans- Option B

Increase in Earnings does not necessarily means an increase in company's total dividend payments, as increase in earnings and decrease in payout rato will result in decrease in total Dividend payment.

- Issuing more shares will result in increase in Total Dividend payment as with Increase in shares the resultant Increase in Total dividend paymnet will happen proportionally.

- Increase dividend payout rate will  increase the company's total dividend payments

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