Which of the Following Is (Are)true

question 72

Multiple Choice

Which of the following is (are) true?

• A) In general, the higher the number of positive NPV investment opportunities for a firm, the lower the dividend payout ratio.
• B) If the clientele effect is correct, firms should follow a constant dividend payout ratio policy.
• C) According to the informational content of dividends, an increase in dividends is always a positive signal.
• D) In industries with volatile earnings, the residual dividend policy results in the most consistent dividend stream.

---

Definitions:

Businesslike Tone

A professional and formal manner of communication, often used in the workplace or official documents.

Written Communication

The exchange of messages or information through written symbols, including letters, emails, reports, and social media posts.

Communication Style

The characteristic ways in which an individual communicates with others, influenced by cultural, personal, and situational factors.

Words

The basic units of language, composed of one or more morphemes, that convey meaning and can be spoken or written.