The Fact That Flotation Costs Can Be Significant Is an Argument

question 7

Multiple Choice

The fact that flotation costs can be significant is an argument for:

• A) issuing larger regular dividends than the industry norm.
• B) maintaining a constant dividend policy even if the firm frequently has to issue new shares.
• C) periodic extra dividend payments.
• D) maintaining a constant dividend policy even when profits decline significantly.
• E) maintaining a low dividend policy and rarely issuing extra dividends.

---

Definitions:

Reconcile

The process of finding a way to make two different ideas, facts, or situations compatible or coherent with each other.

Unplanned Childbearing

Occurrences of pregnancy and childbirth that were not intended or planned before conception.

Environmental Conservation

The protection, preservation, management, or restoration of natural environments and the ecological communities that inhabit them.

AIDS

Acquired Immunodeficiency Syndrome, a chronic, potentially life-threatening condition caused by the human immunodeficiency virus (HIV), which damages the immune system.