The Dividend Policy That Strikes a Balance Between Current Dividends

question 37

Multiple Choice

The dividend policy that strikes a balance between current dividends and the firm's future growth is called the ______ policy. 

• A)optimal dividend
• B)dividend irrelevance
• C)compromise dividend
• D)dividend signaling
• E)dividend preference

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Definitions:

Positive Output

A situation where the production of goods or services results in a quantity greater than zero.

Long-Run Cost Function

A representation of the total cost associated with producing a given level of output when all inputs, including capital, can be varied.

Positive Output

A situation in which an economic model or production process results in a positive amount of goods or services being produced.

Supply Function

A mathematical relationship that shows the quantity of a good or service that producers are willing and able to sell at different prices.