When a Firm Chooses a Constant Long-Term Payout Ratio Its

question 38

Multiple Choice

When a firm chooses a constant long-term payout ratio its dividend policy, that ratio is known as its ________________________. ​

• A)Target payout ratio​
• B)Stable dividend per share​
• C)Regular dividend​
• D)Special payout policy​

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Definitions:

Usurious Rate

An interest rate charged on a loan that exceeds the legal limit set by law.

Principal

The main party to a transaction or contract, responsible for its fulfilment.

Interest

The cost of borrowing money, represented as a percentage of the total amount loaned, or the revenue from lending money.

Public Office

An office held by a member of the public sector that usually involves duties, responsibilities, and powers determined by a governmental entity or law.