Which One of the Following Statements Is Correct Concerning the External

question 73

Multiple Choice

Which one of the following statements is correct concerning the external financing need (EFN) and the dividend payout ratio? Assume EFN is a positive number.

• A) The dividend payout ratio has no effect on the EFN.
• B) An increase in the dividend payout ratio will decrease the EFN.
• C) An increase in the dividend payout ratio will increase the EFN.
• D) The effect on EFN caused by an increase in the dividend payout ratio cannot be predicted.
• E) An increase in EFN causes the dividend payout ratio to decrease.

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Definitions:

Minitrial

A simplified court process involving a short trial and an advisory verdict, often used to encourage settlement.

Non Obstante Veredicto

A legal term meaning "notwithstanding the verdict," used when a judge overturns a jury's decision or enters a judgment contrary to the jury's verdict.

Mens Rea

A legal principle that refers to the intent or knowledge of wrongdoing that constitutes part of a crime, as opposed to the action or conduct of the accused.

Demurrer

A legal challenge that objects to the sufficiency of a pleading without addressing the underlying facts.