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:

Job Demands

Aspects of employment that demand ongoing physical or psychological exertion, including physical, psychological, social, or administrative elements.

Job Resources

Elements of a job or work environment that help employees to achieve work goals, reduce job demands, and stimulate personal growth, learning, and development.

Core Job Characteristics

Fundamental aspects of a job that affect an employee's motivation and job satisfaction, such as skill variety, task identity, task significance, autonomy, and feedback.

Critical Psychological States

Key mental conditions that are crucial for employees' motivation and job satisfaction, including experienced meaningfulness, responsibility for outcomes, and knowledge of results.