If a Firm's Dividend Payout Ratio Is Determined After Achieving

question 76

Multiple Choice

If a firm's dividend payout ratio is determined after achieving a specific capital structure, then:

• A)Dividends are an input to the financial plan
• B)The capital budget should be revised
• C)Dividends are being used as a plug item
• D)Dividend forecasts become crucial to planning

---

Definitions:

License

A permit from an authority to own or use something, do a particular thing, or carry out a trade.

Personal Privilege

A special right, advantage, or immunity granted to an individual based on status or relationship.

Tenancy in Common

A form of co-ownership where each party owns a separate fraction of the property and can transfer their interest independently.

Joint Tenancy

Joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants, his or her interest automatically passes to the surviving joint tenant(s).