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What is the effects of inflation on a company's payout ratio?

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Question ajoutée par Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date de publication: 2016/05/15
Frank Mwansa
par Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

In period of high inflation paying out dividends based on historic cost profits can lead to an erosion of the operating capacity of the business if dividend payment is higher than current cost profit. This could jeopardize the firfirm's survival' especially whenassets come to be replaced.

Asim kuddoos
par Asim kuddoos , Accounts Adviser , Apeiron Accounting & Book-keeping LLC.

Could u explain please 

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