What Does Dividend Smoothing Refers To

question 22

Multiple Choice

What does dividend smoothing refers to?

• A) Adopting a consistent, rising dividend over time.
• B) Declaring an EPS that does not change much in value from year to year.
• C) Offsetting declines in income with higher dividend payouts.
• D) Providing a DRIP (dividend reinvestment programs) to absorb unwanted cash payouts.
• E) Ensuring that the dividend yield ratio is the same from year to year.

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Definitions:

Influenza

A highly contagious viral infection that attacks the respiratory system, characterized by symptoms like fever, cough, and muscle aches.

Allergy

An immune system reaction to a foreign substance (allergens) that is not typically harmful to the body.

Slight Fever

A minor elevation in body temperature, often indicating the presence of an infection or illness.

Muscle Aches

Discomfort or pain within the muscle tissue, often resulting from overexertion, tension, or a physical condition.