Managers Have Been Characterized as Reluctant to Increase Dividends If

question 70

Multiple Choice

Managers have been characterized as reluctant to increase dividends if:

• A) dividends were increased in the preceding year.
• B) earnings have permanently increased.
• C) the dividend increase cannot be sustained.
• D) the dividend payout ratio exceeds 20%.

Understand the difference between normative and positive economics, and identify examples of each.

Recognize and explain the importance of empirical economics in analysing economic problems.

Distinguish between questions that can be answered using positive economic analysis and those that require normative reasoning.

Identify and assess the implications of economic statements and policies on equity and efficiency.

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Definitions:

Weighted Average

A calculation that takes into account the different degrees of importance of the numbers in a dataset, making some values count more heavily than others.

Cost Flow Assumption

Accounting methods used to determine the cost of goods sold and ending inventory, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

Weighted Average

A mathematical calculation that takes into account both the numbers and their weights, resulting in a figure that reflects their combined effect.

Purchase Costs

The actual amount paid or the expense incurred in acquiring goods or services, including the product price, shipping, and handling fees.