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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Dividend policy
Hi Sir, I would like to ask for are there any theories talking about the relationship between leverage, profitability and liquidity with dividend policy?
Thanks sir
No – there is no direct connection, although obviously the company will take those factors into account when deciding on what dividend to pay and whether or not they can maintain their dividend policy.
how about any theories that have indirect connection with those factors?
Everything needed is explained in my free lectures – they are a complete free course and cover everything needed to be able to pass the exam well.