Amber Limited has been experiencing a downfall in its popularity due to growing competition Also the...........

Amber Limited has been experiencing a downfall in its popularity, due to growing competition. Also the company doesn’t see any forthcoming viable business expansion opportunities in the near future. So the management of the company has decided to declare high dividends for the current financial year. Identify the factor related to dividend decision being described above.

Cash flow position

Growth opportunities

Stability of earnings

Stability of dividends

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Explanation:

- Option 1: Cash flow position: Refers to the company's liquidity and ability to pay dividends without affecting its operational needs. Companies with strong cash flow are more likely to pay dividends.

- Option 2: Growth opportunities: ?? Correct Answer: This factor involves future investment opportunities that can lead to the company's expansion and increased profitability. If there are limited growth opportunities, a company might choose to distribute more profits as dividends.

- Option 3: Stability of earnings: Consistent and predictable earnings make it easier for a company to pay stable dividends over time. Companies with stable earnings are more likely to maintain or steadily increase dividends.

- Option 4: Stability of dividends: Some companies strive to maintain stable dividend payments, regardless of short-term earnings fluctuations, to meet shareholder expectations.