Which of the Following Is NOT a Reason for a High-Dividend-Payout

question 89

Multiple Choice

Which of the following is NOT a reason for a high-dividend-payout policy?

• A)Convenient and direct deposit of cash dividend
• B)Avoidance of transaction costs for selling shares
• C)Higher potential future returns for shareholders
• D)Cash payments today versus uncertain cash payments tomorrow

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Definitions:

Direct Materials

Basic substances used explicitly in the manufacturing of certain products or services.

Production Budget

A financial plan that outlines the cost of producing the goods or services a company plans to sell, including direct labor, materials, and overhead.

Denim Material

A durable, woven fabric commonly used for making jeans and other clothing items, characterized by its indigo blue color.

Budgeted Production

The planned amount of goods to be produced over a certain period, often based on demand forecasts.