Question

Step 1

** Dividend payout policy:** An organization's dividend policy manages the measure of dividends paid out by the organization to its investors and the recurrence with which the dividends are paid out.

Step 2

*The factors that influence dividend payout policy is as follows:*

*P*** rofitability:** The gainfulness of a firm is reflected in net profit proportion and proportion of profit to add up to assets. A very gainful organization has ability to pays higher dividends and an organization with lower profits will embrace a dividend policy.

Step 3

** Proprietorship structure:** The proprietorship structure of an organization additionally impacts the strategy. An organization with a higher promoter’s possessions ...

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