Which of the Following Is NOT a Goal of a Compromise

question 272

Multiple Choice

Which of the following is NOT a goal of a compromise dividend policy?

• A) Avoid the need to sell new equity.
• B) Maintain a target dividend payout ratio.
• C) Allow for reductions in the dividend payment when convenient.
• D) Avoid rejection of positive NPV projects to pay a dividend.
• E) Maintain a target debt/equity ratio.

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