Which One of the Following Tends to Be the Primary

question 4

Multiple Choice

Which one of the following tends to be the primary attitude of firms' towards their dividend policy?

• A) Dividends should be increased annually no matter what.
• B) Dividends should be flexible and adjusted annually in response to changes in the firm's earnings.
• C) The costs associated with cutting dividends are perceived to be less than the costs of obtaining external financing.
• D) Once a dividend is increased, it should not be decreased.
• E) Dividend smoothing is talked about but is not really a factor that affects dividend decisions.

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Definitions:

Gelled Electrolyte

A type of battery electrolyte that has a gel-like consistency, often used in lead-acid batteries, providing advantages such as reduced leakage and maintenance.

Specific Gravity Reading

A measurement that indicates the density of a liquid compared to the density of water.

Completely Dead

A term often used to describe a totally unresponsive or non-functional electronic device or system.

Deep-cycling

The process of discharging and then fully charging a rechargeable battery, used to maximize the battery's lifespan.