Wireworks Ltd. Is a company manufacturing different kinds of wires. Despite fierce competition in the industry, it has been able to maintain stability in its earnings and as a policy, uses its profits to distribute dividends. The small investors are very happy with the company as it has been declaring high and stable dividend over past five years.
In context of the above case:
1. State any one reason because of which the company has been able to declare high dividend by quoting line from the paragraph.
2. Why do you think small investors are happy with the company for declaring stable dividend?
