Which of the Following Is Not True

question 28

Multiple Choice

Which of the following is not true?

• A) Firms have long-run target dividend payout ratios
• B) Dividend changes follows shifts in long-term, sustainable earnings
• C) Managers are reluctant to make dividend changes that might have to be reversed
• D) All of the above

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Definitions:

Payment

The action or process of paying someone or something or the amount paid.

Cash Discount

A discount allowed for a payment within the discount period.

Payment Terms

Conditions under which a seller will complete a sale, typically specifying the period allowed to a buyer to pay off the amount due.

Invoice

A document issued by a seller to a buyer, listing goods or services provided and expressing the amount due for payment.