Which of the Following Tend to Keep Dividends Low

question 52

Multiple Choice

Which of the following tend to keep dividends low?
I.Potential for companies to use excess cash on negative NPV projects
II.Restrictive terms contained in bond indenture agreements
III.Manager's desire to maintain constant dividends over time
IV.Flotation costs

• A)II and III only
• B)I and IV only
• C)II,III,and IV only
• D)I,II,and III only
• E)I,II,III,and IV

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Definitions:

Puzzle Boxes

Apparatuses used in psychological and animal behavioral experiments where subjects must solve a problem or manipulate mechanisms to escape or obtain a reward.

Thorndike

An influential American psychologist who developed the law of effect, which suggests that behaviors followed by satisfying consequences tend to be repeated, while those followed by unpleasant consequences are less likely to be repeated.

Reinforcements

In psychology, stimuli or events that increase the likelihood of a behavior being repeated.

Operant Conditioning

A teaching technique that involves changing the level of a behavior by applying rewards or punishments.