Q.
1
Assertion (A): The important aspect of dividend policy is to determine the amount of earnings to be distributed to shareholders and the amount to be retained in the firm.
Reason (R): Dividend policy of the firm has its effect on both the long term financing and the wealth of shareholders.
Codes:
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A
(A) and (R) are correct and (R) is the correct explanation of (A)
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B
(A) and (R) both are correct, but (R) is not the correct explanation of (A)
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C
(A) is correct, but (R) is wrong
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D
(R) is correct, but (A) is wrong