A Firm That Maintains a "Stable Dollar Dividend Per Share

question 118

Multiple Choice

A firm that maintains a "stable dollar dividend per share" will generally not increase the dividend unless

• A) a stock split occurs.
• B) the firm merges with another profitable firm.
• C) the firm is sure that a higher dividend level can be maintained.
• D) the P/E ratio has increased steadily over the past 5 years.

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