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Determinants of dividend policy include all EXCEPT:
AEarnings stability
BLiquidity position
CInventory turnover
DTax considerations
Answer & Solution
Correct answer: C. Inventory turnover
1. Determinants of dividend policy: earnings, liquidity, growth opportunities, tax position, legal restrictions, debt obligations, control.
2. Inventory turnover is an operating efficiency measure, not a dividend determinant.
3. Hence D is correct.
_Source: ICAI BoS CA Inter Paper 6A, Ch 8 "Dividend Decisions", §4 — Determinants_