If a Firm's Dividend Payout Ratio Is Determined After Achieving

question 76

Multiple Choice

If a firm's dividend payout ratio is determined after achieving a specific capital structure, then:

• A)Dividends are an input to the financial plan
• B)The capital budget should be revised
• C)Dividends are being used as a plug item
• D)Dividend forecasts become crucial to planning

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Definitions:

Base

A substance that can accept protons or donate a pair of electrons to form a bond, usually raising the pH of a solution when dissolved in water.

Great Arteries

The major arteries, such as the aorta and pulmonary artery, that carry blood away from the heart to the body or lungs.

Cardiac Cycle

The sequence of events in the heart from the beginning of one heartbeat to the beginning of the next, including systole (contraction) and diastole (relaxation).

Ventricles

Lower chambers of the heart that receive blood from the atria and pump it to the lungs and the rest of the body.