Constant-Pay-Out-Ratio Dividend Policy Is a Dividend Policy Based on the Payment

question 31

True/False

Constant-pay-out-ratio dividend policy is a dividend policy based on the payment to existing owners of a dividend in the form of stock as a certain percentage of the firms total number of stocks outstanding in each dividend period.

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Definitions:

Lightning Strike

A natural electrical discharge of very short duration and high voltage between a cloud and the ground or within a cloud.

Fireworks

Explosive devices used primarily for entertainment purposes, emitting light, noise, smoke, and various colors when ignited.

Guaranteed Insurability

An insurance policy feature that allows the policyholder to buy additional coverage without proof of insurability at designated times.

Life Insurance

A contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured.