Which of the Following Statements About Net Payouts Is True

question 22

Multiple Choice

Which of the following statements about net payouts is true?

• A)A study done on NYSE firms indicates that their net payout ratios have declined significantly since the 1930s.
• B)In the periods just after market crashes , NYSE firms tended to pay out significantly more to its equity holders than they raised.
• C)The net payout ratios of NYSE firms have increased slightly since the 1940s.
• D)In the periods just after market crashes , the net payouts of NYSE firms declined significantly.

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Definitions:

Equity

Ownership interest in an asset after deducting all debts associated with that asset, highlighting a financial stake in a company or property.

Credit Score

A numerical expression based on an analysis of a person's credit files, representing the creditworthiness of an individual.

Business Loan

Financing that businesses seek and receive to help with expenses, growth, or other financial needs, typically from a banking institution or lender.

Fixed-rate Loan

A loan where the interest rate remains constant throughout the term of the loan, regardless of market fluctuations.