Which of the Following Is NOT a Stated Reason for Following

question 48

Multiple Choice

Which of the following is NOT a stated reason for following a sticky dividend policy?

• A)Individuals who use the cash flow from dividends for current income do not like having their cash flow cut unexpectedly.
• B)The market considers dividend payments a signal of the firm's health.A dividend cut may be considered bad news.
• C)If managers pay dividends,they are constrained from paying dividends so large that cash dividends would come from legal capital.
• D)All of the above are stated reasons for sticky dividend policy.

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Definitions:

Mental Retardation

An outdated and insensitive term formerly used to describe individuals with below-average intellectual functioning and significant limitations in adaptive behaviors; now more commonly referred to as intellectual disability.

Giftedness

The possession of natural talents or abilities at levels significantly higher than average.

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Intelligence Quotient, a measure of a person's intellectual abilities in relation to their age group, typically assessed through standardized testing.

Arnold Gesell

An American psychologist and pediatrician known for his pioneering work in child development and promoting the concept that child growth unfolds predictably and sequentially in several domains.