________ Is a Commonly Used Approach to Determine R&D Budget

question 20

Multiple Choice

________ is a commonly used approach to determine R&D budget allocations.

• A) Financing as many project proposals as possible
• B) Using the percentage of sales method
• C) Budgeting for R&D about what competitors spend
• D) Deciding how many successful new products are needed
• E) All of the above

---

Definitions:

Dividend Policy

Dividend Policy is a company's strategy or guidelines used to decide how much of its earnings will be paid out to shareholders in the form of dividends.

Common Stock

This is a type of security that signifies ownership in a corporation and represents a claim on part of the company's profits.

Dividends Payable

The amount of declared dividends that a company owes to its shareholders but has not yet paid.

P/E

Price-to-Earnings Ratio, a valuation metric used to measure a company's current share price relative to its per-share earnings.