A Policy of Dividend "Smoothing" Refers To

question 70

Multiple Choice

A policy of dividend "smoothing" refers to:

• A)Maintaining a constant dividend payout ratio
• B)Keeping the regular dividend at the same level indefinitely
• C)Maintaining a steady progression of dividend increases over time
• D)Alternating cash dividends with stock dividends

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Definitions:

Ordinary Prudent Person

A legal standard used to determine the level of care that a typical, reasonable person would exercise in a given situation, for purposes of establishing negligence or compliance.

Contractual Duties

Obligations that a party is bound to fulfill as per the terms of a contract.

Professional

An individual who offers specialized services or advice based on formal training or expertise.

Common Law Fraud

A type of fraud that involves making false representations of fact intentionally or recklessly for the purpose of inducing another to act to their detriment.