The Constant Dividend Model Is Difficult to Rely on in Practice

question 19

True/False

The constant dividend model is difficult to rely on in practice because companies rarely maintain constant dividends.

---

Definitions:

Private Pension Plans

Retirement plans funded and maintained by private sector employers, providing employees with a fixed or variable pension payment upon retirement, separate from government pension schemes.

Pension Plans

Retirement plans sponsored by employers that provide a fixed income to employees after retirement.

Pay Secrecy

Policies or practices that restrict employees from discussing or disclosing their own or others' compensation information, often controversial in discussions of wage fairness.

Pay Compression

A situation where there is a minimal difference in pay between employees despite differences in their skills or experience.