The Fact That Flotation Costs Can Be Significant Is Justification

question 199

Multiple Choice

The fact that flotation costs can be significant is justification for:

• A) A firm to issue larger dividends than their closest competitors.
• B) A firm to maintain a constant dividend policy even if they frequently have to issue new shares of stock to do so.
• C) Maintaining a constant dividend policy even when profits decline significantly.
• D) Maintaining a high dividend policy.
• E) Maintaining a low dividend policy and rarely issuing extra dividends.

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Definitions:

Cultural Bias

The tendency to interpret and judge phenomena by standards inherent to one's own culture.

Inter-rater Reliability

The level of agreement among independent observers or raters on the assessment or observation of a particular feature, indicating the consistency of measurements.

Schizophrenia

A complex psychiatric disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Special Interest Groups

Organizations of people with shared interests who attempt to influence public policy and decision making to benefit their members or causes.