Research Has Shown All of the Following to Be True

question 14

Multiple Choice

Research has shown all of the following to be true of the way corporations determine dividends except:

• A) Firms have short-run target payout ratios.
• B) Firms have long-run target payout ratios.
• C) The focus is more on dividend changes rather than absolute dividends.
• D) Managers try to avoid dividend changes that may need to be reversed.

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Definitions:

Large Audience

A substantial number of viewers, listeners, or spectators gathered for an event or through a broadcast media platform.

No Free Lunch

A principle asserting that everything has a cost, and nothing valuable can be obtained without effort or exchange.

Economists

Professionals who study, develop, and apply theories and concepts from economics to analyze data and understand economic issues and trends.

Free Goods

Goods that are abundant and available without cost; they are not scarce in relation to demand, such as air and sunlight.