Sir I just completed a class of FCF valuation in equity and you linked that part to capital budgeting chapter that in the years when the EPS is high then to the board may keep the dividends constant to maintain the stability of the dividends and vice versa.
Sir I think this is similar to the Earnings management part in FRA evaluation of financial reports.
But then earnings management is a biased accounting choice then sir for maintaining the stability of dividend the financial reports will lack the decision usefulness.
Is my thinking correct?
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