In 2009, JPMorgan Chase Cut Its Dividend Down to $0

question 27

True/False

In 2009, JPMorgan Chase cut its dividend down to $0.05 per share and the bank's share price increased in response.

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Definitions:

Contribution Margin

The amount by which a product's sales price exceeds its variable costs. It contributes to covering fixed costs and generating profit.

Variable Costs

Expenses that change in proportion to the level of production or sales activity.

Contribution Margin

The difference between the sales revenue of a product and the variable costs associated with its production and sales.

Unit Contribution Margin

The amount that the sale of one unit contributes towards covering fixed costs, calculated as the sales price per unit minus variable costs per unit.