AFB,IncHad Earnings Per Share of $4 Per Share Last Year

question 19

Multiple Choice

AFB,Inc.had earnings per share of $4 per share last year and paid a dividend of $1 per share.For the current year,AFB,Inc.generated earnings per share of $6 and paid a dividend of $1 per share.This is an example of what type of dividend policy?

• A) constant dividend payout ratio
• B) stable dollar dividend per share
• C) small, regular dividend plus a year-end extra
• D) payout ratio equal to zero

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Definitions:

First Words

The initial set of words a child learns to communicate with, marking an important milestone in language development.

Evolution

The process by which different kinds of living organisms are believed to have developed from earlier forms during the history of the earth.

Genetic Trait

An attribute or characteristic that is passed from parents to offspring through genes.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, emphasizing the effect of consequences on behavior.