Managers Have Been Characterized as Reluctant to Increase Dividends If

question 70

Multiple Choice

Managers have been characterized as reluctant to increase dividends if:

• A) dividends were increased in the preceding year.
• B) earnings have permanently increased.
• C) the dividend increase cannot be sustained.
• D) the dividend payout ratio exceeds 20%.

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Definitions:

Reaction

The process of responding to a stimulus or an action, seen in various contexts including chemistry, physiology, and psychology.

Headaches

Pain or discomfort in the head, scalp, or neck, which can vary in severity and duration.

Level of Significance

The probability threshold at which the null hypothesis is rejected in hypothesis testing, indicating the strength of evidence needed to conclude that results are statistically significant.

Null Hypothesis

The hypothesis that there is no significant difference between specified populations, any observed difference being due to sampling or experimental error.