According to the ____ Dividend Policy a Firm That Has

question 27

Multiple Choice

According to the ____ dividend policy a firm that has more funds than it needs should pay a cash dividend to shareholders.

• A)target payout ratio
• B)stable dividend per share
• C)residual
• D)None of the above

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Definitions:

Interest Rates

The percentage at which interest is charged or paid for the use of money, typically expressed as an annual percentage of the principal.

Corporate Taxes

Taxes imposed on the income or profit of corporations by the government.

After-tax Profits

The amount of money a company retains after all income taxes have been subtracted from its earnings.

Marginal Propensity

The ratio of the change in an economic variable (such as consumption or savings) in response to a change in another variable (such as income).