Corporation A's Dividend Policy Is to Maintain a Constant Payout

question 112

Multiple Choice

Corporation A's dividend policy is to maintain a constant payout ratio.This year Corporation A paid out a total of $2 million in dividends.Next year,Corporation A's sales and earnings per share are expected to increase.Dividend payments are expected to

• A) remain at $2 million.
• B) increase above $2 million.
• C) decrease below $2 million.
• D) increase above $2 million only if the company issues additional shares of common stock.

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Definitions:

Experimenter Bias

A form of bias introduced by the expectancies or preferences of the researcher that can affect the outcome of an experiment.

Expected Outcome

The anticipated result or effect of an action, process, or experiment.

Experiment

An experiment conducted for the purpose of discovering something new, verifying a hypothesis, or proving an established fact.

Ganzfeld Procedure

An experimental technique used in parapsychology to test individuals for extrasensory perception, involving sensory deprivation.