Most Firms That Issue Dividends Try to Maintain a Consistent

question 65

Multiple Choice

Most firms that issue dividends try to maintain a consistent _________________.

• A) dividend per share
• B) dividend payout ratio
• C) both policies are frequently employed
• D) neither policy is frequently employed

---

Definitions:

ROA

Return on Assets; a financial ratio indicating the profitability of a company relative to its total assets.

Total Assets

The combined value of all owned resources that have economic value and can provide future benefits to the business.

Return On Assets

A profitability ratio that measures how efficiently a company uses its assets to generate profit.

Return On Equity

An indicator of financial performance determining how effectively a company uses shareholders' funds to generate income, reflecting efficiency in utilizing investor capital.