Statement	1	2	3	4	5	Total	Mean	Rank
Dividend policy is relevant to market price	15	0	57	200	200	471	3.81	8
Dividends affect the common stock price	10	10	45	236	175	476	3.84	7
Dividends provide signal to investors about company’s performance	0	0	60	160	320	540	4.35	1
Investors are indifferent between returns from dividends and capital gains	0	20	60	140	295	515	4.15	2
A firm should formulate its dividend policy to produce maximum value for its shareholders.	5	20	45	156	275	501	4.04	3
Increasing dividends will reduce shareholders‘ control over management	0	78	48	176	125	427	3.44	16
A firm’s investment, financing and dividend decisions are interrelated	0	40	75	196	150	461	3.72	11.5
A company develops its dividend policy based on the dividend tax effect on shareholders	0	20	87	260	100	467	3.77	9.5
A firm’s dividend policy generally affects its cost of capital	10	48	45	160	175	438	3.53	15
Paying dividends forces a firm to seek more external financing	0	28	75	240	125	468	3.77	9.5
The company takes a dividend decision, despite being under the control of external financiers	0	80	75	180	70	405	3.27	17
Dividends encourage a firm’s manager to act in the interest of the firm’s outside shareholders	0	60	42	220	125	447	3.60	14
Investors generally prefer cash dividends today due to uncertain future price appreciation	0	10	75	256	150	491	3.96	4.5
A firm should review cash dividend as a residual after funding desired investments from earnings because dividend policy is less important than investment policy	0	50	57	180	175	462	3.72	11.5
A firm’s expenditures on new capital investments generally affect its dividend policy	0	40	27	200	225	492	3.96	4.5
Cash dividends are considered as fixed cost of equity	0	40	30	200	220	490	3.95	6
Cash dividends weaken the company’s financial flexibility and liquidity	0	20	105	240	95	460	3.71	13