Dividends Dividend Policy

Question: Dividend Policy experts?

1. What arguments are advanced to claim that dividend policy is irrelevant? What arguments purport to show dividend policy is relevant? Which do you think is correct?

Answer: The way corporations spend money not to mention all the huge corporate pay packages and fraud committed by managment, I think it is a good policy to pay out the dividends to shareholders. The only negative is that the federal government refuses to eliminate the tax on dividends. Remember the corporations have already paid taxes on this money so it is double taxation.

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