Dividends declared by the companies are taken as a positive note by the investors. Stock markets react positively and share prices show an increase. However, the Companies Act, places certain restriction on dividend payouts.
(i) Explain any three factors affecting dividend decision.
(ii) Bring out the value shown by Companies Act by placing restrictions of payouts as dividends.
(Hi) Bring out values ignored, if the company does not adhere to such restrictions