The Fact That flOtation Costs Can Be Significant Is Justification

question 251

Multiple Choice

The fact that flotation costs can be significant is justification for:

• A) A firm to issue larger dividends than their closest competitors.
• B) A firm to maintain a constant dividend policy even if they frequently have to issue new shares of stock to do so.
• C) Maintaining a constant dividend policy even when profits decline significantly.
• D) Maintaining a high dividend policy.
• E) Maintaining a low dividend policy and rarely issuing extra dividends.

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Definitions:

Cross-Classification Table

A cross-classification table displays the frequency distribution of variables in a table format, facilitating the analysis of the relationship between two or more categorical variables.

Cross-Classification Table

A table used to display the frequency distribution among variables, showing how many times each combination of variable categories occurs.

Relative Frequencies

The proportion of times that a certain event occurs relative to the total number of outcomes.

Cross-Classification Table

A table that displays the frequency distribution of two or more categorical variables.