__________ Is the Obligation to Answer for Something/someone; the Duty

question 15

Multiple Choice

__________ is the obligation to answer for something/someone; the duty to carry out an assignment to a satisfactory conclusion

• A)Authority
• B)Responsibility
• C)Accountability
• D)Ethics

Comprehend the implications of dividend reinvestment plans.

Identify investor preferences regarding dividend payouts.

Understand the concept and implications of a compromise dividend policy.

Recognize the reasons firms might have for adjusting their dividend policies.

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Definitions:

Amortize

The process of gradually paying off a debt or spreading the cost of an intangible asset over its useful life for accounting and tax purposes.

Equal End-of-Year

A term referring to payments or allocations that are made uniformly at the end of each year.

Effective Annual Rate

The effective annual rate (EAR) is the interest rate on a financial product restated from nominal terms into an annualized rate accounting for compounding over a period.

Loan Contract

A legally binding agreement between a borrower and a lender that outlines the terms and conditions of a loan.