Many Firms Try to Maintain a Stable Dividend Policy ____

question 1

Multiple Choice

Many firms try to maintain a stable dividend policy ____.

• A) because of the informational content of dividend changes
• B) in order to satisfy investors who rely on dividends as a primary source of income
• C) in order to remain as eligible investments for many financial institutions
• D) All of these are correct

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Definitions:

Chartered Bank

A financial institution that has been established and operates under a charter granted by the government, offering a range of banking services.

Partnership

A form of business legally organized by multiple individuals who participate in managing the enterprise and dividing its earnings.

Bank of Nova Scotia

A multinational Canadian banking and financial services company also known as Scotiabank.

VALS Profile

A psychographic tool developed to categorize consumers into types based on their values, attitudes, and lifestyles to better understand buying behavior.