The Problem with a Constant-Pay-Out-Ratio Dividend Policy from the Shareholder's

question 78

Multiple Choice

The problem with a constant-pay-out-ratio dividend policy from the shareholder's perspective is that

• A) even when earnings are low, the company must pay a fixed dividend.
• B) there is no informational content.
• C) it bores the shareholders.
• D) if the firm's earnings drop, so does the dividend payment.

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Definitions:

Existing Sources

Materials that have been produced for some other reason but that can be used as data for social research.

Documents

Written, printed, or electronic materials that provide information or evidence.

Medical Records

Detailed written documents and electronic records that contain the history, diagnosis, treatment, and prognosis of a patient's healthcare management over time.

Content Analysis

A research technique used to objectively and systematically identify specified characteristics of messages within texts or sets of texts.