A Potential Downfall of Using Dividends as the Plug Item

question 53

Multiple Choice

A potential downfall of using dividends as the plug item is that:

• A)It may give shareholders mixed signals
• B)Dividends are constant within a planning horizon
• C)The firm may have to borrow cash to pay dividends
• D)Shareholders may receive an excessive return

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Definitions:

Cardiac Output

The volume of blood the heart pumps through the circulatory system in one minute, a crucial parameter for determining heart efficiency.

Oxygen Level

The concentration of oxygen in a particular environment or medium, typically referring to its amount in the blood.

Internal Carotid Arteries

Major arteries in the head that supply blood to the brain, eyes, and other parts of the head.

Vertebral Arteries

Arteries that supply blood to the upper part of the spinal column, neck, and lower part of the brain.