In the Percent-Of-Sales Method

question 53

Multiple Choice

In the percent-of-sales method:

• A) as the dividend payout ratio goes up,the required new funds also rise.
• B) as the dividend payout ratio rises,required new funds decline.
• C) the dividend payout ratio does not affect new funds.
• D) a change to the ex-dividend date causes the required new funds to change.

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Definitions:

Milieu

The physical or social setting in which something occurs or develops; environment.

Pica

A disorder characterized by the persistent ingestion of non-nutritive substances, such as dirt or paper, not typical for one's age or culture.

Hospitalization

The process of admitting a person into a hospital for medical treatment and care.

Systolic Blood Pressure

The pressure in the arteries when the heart muscle contracts and is the higher of the two blood pressure measurements, such as 120 in 120/80.