The Fact That Flotation Costs Can Be Significant Is Justification

question 60

Multiple Choice

The fact that flotation costs can be significant is justification for:

• A)a firm to issue larger dividends than its closest competitors.
• B)a firm to maintain a constant dividend policy even if it frequently has to issue new shares to do so.
• C)maintaining a constant dividend policy even when profits decline significantly.
• D)maintaining a high dividend policy.
• E)maintaining a low dividend policy and rarely issuing extra dividends.

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Definitions:

Human-Relations Approach

A management theory emphasizing the importance of understanding human behavior, social needs, and group dynamics within the workplace.

Theory X

A management style that assumes employees are inherently lazy and require strict supervision and control.

Work Place

The physical location where someone is employed or where work is done.

Research Productivity

The rate at which a researcher or group of researchers produces scientific outputs, typically measured by publications in scholarly journals.