Question

What conflict arises in dividend decisions?

a.

Industry trend for dividend per share (DPS) versus Retention of profit for internal financing

b.

Profit Maximisation versus Wealth maximisation

c.

Short-term goal versus Long-term goal

d.

External finance versus Internal finance

Answer: (b).Profit Maximisation versus Wealth maximisation Explanation:In dividend decisions, conflicts arise in respect of management decisions for Profit Maximisation versus Wealth maximisation.

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Q. What conflict arises in dividend decisions?

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