The Advantage of Using the Low-Regular-And-Extra Dividend Policy Is That

question 53

Multiple Choice

The advantage of using the low-regular-and-extra dividend policy is that

• A) the firm avoids giving the shareholders false hopes.
• B) the extra dividend may become a regular event.
• C) if the firm's earnings drop, so does the dividend payment.
• D) cyclical shifts in earnings may be avoided.

---

Definitions:

Coping Mechanisms

Psychological strategies that individuals employ to manage stress, adversity, or trauma, aiming to minimize negative emotional responses.

Embodied Attitudes

The concept that attitudes and opinions are reflected through one's physical actions and postures, suggesting a deep interconnection between body and mind.

Mere Exposure Effect

A psychological phenomenon where repeated exposure to a stimulus increases a person’s preference for it.

Attitudes

A person's enduring positive or negative evaluation of an object, person, event, or idea.