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

question 25

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:

Change Agent

Tries to change the behaviour of another person or social system.

Performance Gap

A discrepancy between the desired and actual state of affairs.

Performance Gap

The difference between actual performance and desired or expected performance, often identified as an area for improvement.