Indicate whether each of the following is generally considered favourable or unfavourable by a potential investor: (a)

Question:

Indicate whether each of the following is generally considered favourable or unfavourable by a potential investor:
(a) A decrease in the payout ratio
(b) An increase in the yield
(c) A decrease in the return on common shareholders' equity
(d) An increase in basic earnings per share
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...