A Firm Is Said to Be "Smoothing" Dividends If Dividends

question 127

Multiple Choice

A firm is said to be "smoothing" dividends if dividends:

• A)Are paid through an automatic dividend reinvestment plan
• B)Change more gradually than changes in earnings
• C)Increase by the same dollar amount each year
• D)Are paid only in even dollar amounts

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Definitions:

Anxiety

An emotion characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure.

Loud Noise

Sounds that are of high amplitude, potentially harmful or disturbing to human hearing.

Parsimony

The principle that the simplest explanation of an event or observation is preferred over more complex explanations.

Anecdote

A short, amusing or interesting story about a real incident or person, often used to illustrate a point.