Which of the Following Would Be Most Likely to Lead

question 7

Multiple Choice

Which of the following would be most likely to lead to a decrease in a firm's dividend payout ratio?

• A) Its access to the capital markets increases.
• B) Its R&D efforts pay off, and it now has more high-return investment opportunities.
• C) Its accounts receivable decrease due to a change in its credit policy.
• D) Its stock price has increased over the last year by a greater percentage than the increase in the broad stock market averages.
• E) Its earnings become more stable.

---

Definitions:

Homeostatic Response

The process by which organisms regulate internal conditions, such as temperature and pH, to maintain a stable internal environment.

Set Point

The target value that a system regulates towards, such as the human body's regulation of temperature or glucose levels.

Stressor

Any biological, chemical, physical, or psychological factor that causes stress or strain to an organism.

Sensor

In homeostasis, a receptor that detects a change (i.e., a deviation from the homeostatic state).