Payout Policy Is a Trade-Off Between ___________ and ___________

question 72

Multiple Choice

Payout policy is a trade-off between ___________ and ___________.

• A)retained earnings; borrowing
• B)capital budgeting; capital structure
• C)cash dividend; issuing stock
• D)declaring stock splits; stock dividends

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Definitions:

Market Price

The contemporary valuation at which a commodity or service can be acquired or disposed of in a commercial environment.

Equilibrium Market Price

The cost level where the amount of products offered matches the amount of products sought after in a marketplace.

Downward Pressure

A force or condition that causes prices or values to decrease or decline in a market.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that producers are willing to sell.