Dividends Are Likely to Shift Up and Down as Earnings

question 24

True/False

Dividends are likely to shift up and down as earnings fluctuate so that managers can maintain a stable payout ratio.

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Definitions:

Nasal Conchae

Long, narrow, curled shelves of bone that protrude into the breathing passage of the nose to increase surface area for moistening, warming, or cooling the air entering the lungs.

Ethmoid Bone

A sponge-like, cube-shaped bone located between the eyes, forming a portion of the nasal cavity and the eye sockets.

Auditory Ossicles

Three small bones (the malleus, incus, and stapes) located in the middle ear that transmit sound vibrations from the eardrum to the inner ear.

Malleus

A small bone in the middle ear that transmits sound vibrations from the eardrum to the incus, one of three ossicles.