"If the Distribution of Income Was Equal, the Lorenz Curve

question 38

Short Answer

"If the distribution of income was equal, the Lorenz curve would be a straight, 45° line." Is the previous statement correct or incorrect?

Understand different types of dividends and the financial implications of each type.

Comprehend the motivations and consequences behind stock splits and their impact on shareholder equity.

Identify and explain the significance of the target payout ratio in dividend policy.

Recognize the goals and limitations of compromise dividend policies for companies.