A Potential Downfall of Using Dividends as the Plug Item

question 36

Multiple Choice

A potential downfall of using dividends as the plug item is that:

• A) it may give shareholders mixed signals.
• B) dividends are constant within a planning horizon.
• C) the firm may have to borrow cash to pay dividends.
• D) shareholders may receive an excessive return.

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Definitions:

Process Addiction

A behavioral addiction where an individual becomes compulsively engaged in an activity that does not involve an addictive substance, such as gambling, eating, or shopping.

PHQ-2

A brief, initial screening tool consisting of two questions used to assess the presence of depressive symptoms.

Depressive Disorder

A mental health disorder characterised by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Detection Window

The period during which a particular substance or marker can be identified or detected through testing.