As per my thinking, a reduction in dividend can also be taken as positive as company will have funds to invest in projects and hence shareholders that it positively.
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Please understand the question first it is saying that what will be the impact of proposal 4 on the earnings what will be the impact on the thinking of the investors so if a company is able to pay a regular cash dividend a regular dividend if it is proposed and it does be the regular dividend it means that its earnings has increased therefore after carrying out its normal activities that is operating activities the company is still able to pay the regular cash dividend it means that the earnings of the company have increased and improved.