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:

Surveying

The technique, profession, and science of determining the terrestrial or three-dimensional positions of points and the distances and angles between them.

Earned Income

Revenue generated from the sale of goods and services, as opposed to donations or grants.

Revenue

The total income generated by a company from its activities, before any expenses are subtracted.

Nonprofit-Corporate Relationship

The dynamics and partnerships between nonprofit organizations and for-profit companies, often focused on achieving mutual benefits or goals.