Characteristics of a Sensible Dividend Policy Include

question 73

Multiple Choice

Characteristics of a sensible dividend policy include:

• A) over time pay out all free cash flows
• B) set the current regular dividend consistent with a long-run target payout ratio
• C) use repurchases to distribute transitory cash flow increases
• D) over time pay out all free cash flows and set the current regular dividend consistent with a long-run target payout ratio
• E) All of these

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Definitions:

Implied Warranties

Legal guarantees automatically granted to a purchaser by law, ensuring that a product meets certain minimum quality standards.

Course of Performance

The conduct between parties to a contract that indicates what they consider acceptable performance under the contract's terms.

Course of Dealing

A history of past interactions between contractual parties that forms a mutual foundation for their agreement.

Breach of Warranty

A violation of a guarantee or promise made about the quality or durability of a product or service.