Dividends are paid from cash. They should be paid only if the cash is available without putting the company in a situation where it may be short on cash.
The impact of inflation on replacement costs is not the most important factor to consider when determining the amount of dividends to be declared. it is more important to consider whether cash will be available to pay the dividends, since dividends are paid from cash.
Cash dividends are not paid from retained earnings, even though they are accounted for as a reduction in retained earnings. Thus, future planned uses of retained earnings is not the most important factor to consider when determining the amount of dividends to be declared. it is more important to consider whether cash will be available to pay the dividends, since dividends are paid from cash.
Shareholder expectations is not the most important factor to consider when determining the amount of dividends to be declared. it is more important to consider whether cash will be available to pay the dividends, since dividends are paid from cash.
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