Which of the following statements is/are false?
(i) Capital profits can never be distributed as dividends to the shareholders.
(ii) Dividends are paid out of profits and, therefore, do not affect the liquidity position of the firm.
(iii) Every company should follow the policy of low dividend payment.
See Also
Is Dividend Investing a Good Strategy?Cash Dividends: Meaning, Benefits, Formula & Limitations | 5paisaTax on dividendsDividend Policy: What It Is and How the 3 Types Work(iv) Walter’s model suggests that dividend payment does not affect the market price of the share.
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This question was previously asked in
UGC Paper 2: Commerce 22nd Dec 2018
(i), (ii) and (iii)
(i), (ii), (iii) and (iv)
(ii), (iii) and (iv)
- (iii) and (iv)
![[Solved] Which of the following statements is/are false?
(i) Capital (2024)](data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mP8/h8AAvMB+NzmkbcAAAAASUVORK5CYII=)