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CIMA Financial Strategy F3 Question # 37 Topic 4 Discussion

CIMA Financial Strategy F3 Question # 37 Topic 4 Discussion

F3 Exam Topic 4 Question 37 Discussion:
Question #: 37
Topic #: 4

An unlisted company which is owned and managed by its original founders has accumulated excess cash following many years of profitable trading.

The Board of Directors is comprised of the four original founders who each hold 25% of the equity share capital.

 

Which THREE of the following will be significant considerations when deciding on the company's dividend policy? 


A.

The adequacy of the pension funds of the original founders. 


B.

The impact of the dividend policy on the company's share price.


C.

The cash requirements of the shareholders in the foreseeable future.


D.

The dividend policy of listed companies in the same industry.


E.

Income tax rates and the personal tax liabilities of the shareholders.


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