In the Percent-Of-Sales Method, an Increase in Dividends

question 84

Multiple Choice

In the percent-of-sales method, an increase in dividends

• A) will increase required new funds.
• B) will decrease required new funds.
• C) has no effect on required new funds.
• D) More information is needed.

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Definitions:

Concrete

Pertaining to material objects, physical construction, or specific, tangible ideas as opposed to abstract concepts.

Symbolic Interaction Theory

Theory that people make sense of the world based on their interpretation of words or symbols used by others.

Semantics

The branch of linguistics and logic concerned with meaning, including the relations between signs and what they denote.

Dissonance Theory

A psychological model proposing that inconsistency among beliefs, attitudes, or behaviors creates discomfort leading to an alteration in one of them to reduce the dissonance.