You Are a Retired Worker Whose Income Is Derived from Your

question 14

Multiple Choice

You are a retired worker whose income is derived from your company pension plan and social security.However,you are highly dependent upon the income generated from your 401(k) plan,which is heavily weighted in stocks that pay substantial dividends.Which of the following dividend policies would you prefer?

• A)constant dividend payment ratio
• B)stable dollar dividend per share
• C)small,regular dividend plus a year-end extra
• D)any of the above would be equally desirable

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Definitions:

Artesian Well

A well tapping a confined aquifer, where the water pressure is sufficient to bring the water to the surface without pumping.

Water Table

The level below which the ground is completely saturated with water, marking the boundary between the unsaturated soil and the groundwater.

Water Table

The upper surface of the saturated zone in the ground where the soil or rocks are permanently wet, marking the boundary between surface water and groundwater.

Topography

The arrangement of the natural and artificial physical features of an area.