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gThe fact that flotation costs can be significant is justification for: maintaining a low dividend policy and rarely issuing extra dividends. a firm to issue larger dividends than their closest competitors. maintaining a high dividend policy. maintaining a constant dividend policy even when profits decline significantly. a firm to maintain a constant dividend policy even if they frequently have to issue new shares of stock to do so.

Respuesta :

Answer:

Maintaining a low dividend policy and rarely issuing extra dividends.

Explanation:

This cost is said to be accumulated or generated by a company when dealing new security systems or organisation into the company. This happens in a registered or legal form of absorption of the said body. And this is been applied or shown in percentages during summation or analysis.

Many factors affect flotation which ranges from the type of issued securities, their size, and risks associated with the transaction. It is generally lower than those for issuing common shares. It is shown as the issuance of common shares typically ranges from 2% to 8%.

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