In a company profits are high and in future less scope of expansion exists. The company has decided to distribute less amount to share of profits to its shareholders.1) Identify of share of profits to its shareholders.2) State any one value which is affected by the company's decision.

In a company profits are high and in future less scope of expansion ex

1.	In a company profits are high and in future less scope of expansion exists. The company has decided to distribute less amount to share of profits to its shareholders.1) Identify of share of profits to its shareholders.2) State any one value which is affected by the company's decision.
Answer» 1. Dividend decision This decision involves how much of the profit earned by the company (after paying tax) is to be distributed to the shareholder and how much of it should be retained in the business. 2. Value affected: Shareholders' wealth will not be maximized.