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FUNDS REQUIREMENT: It’s a key factor influencing the payout ratio of a firm is its requirement of funds in the foreseeable  in future. LIQUIDITY:  Dividends entail cash payment.  Hence, liquidity of the firm has a bearing on its dividend decision.
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Dividend Payout Ratio

  • 1. FUNDS REQUIREMENT: It’s a key factor influencing the payout ratio of a firm is its requirement of funds in the foreseeable in future. LIQUIDITY: Dividends entail cash payment. Hence, liquidity of the firm has a bearing on its dividend decision.
  • 2.
  • 3.