A Constant Payout Ratio Implies Dividends Vary with Earnings.​

question 31

True/False

A constant payout ratio implies dividends vary with earnings.​

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Definitions:

Financial Statements

Reports that provide detailed information on a company's financial performance, including balance sheet, income statement, and cash flow statement.

Fair Value Method

An accounting approach used to assess and assign a value to assets or liabilities based on current market prices or the estimated prices of similar transactions.

Net Income

The conclusive income of a corporation post all deductions for costs and taxes from its aggregate revenue.

Dividends

A share of profits paid out to shareholders by a corporation, usually in cash or in the form of more shares.