If Managers Make Dividend Decisions Only After Taking All Positive-NPV

question 74

Multiple Choice

If managers make dividend decisions only after taking all positive-NPV projects,they are following

• A) a constant payout ratio policy
• B) a low-regular-and-extra policy
• C) a constant nominal payment policy
• D) a residual payment policy

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Definitions:

Variability

A statistical measure that describes the dispersion or spread of data points in a data set.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points around their mean.

Mean Deviation

The average deviation for all scores from the mean of a distribution, calculated as the sum of the absolute value of the scores’ deviations from the mean divided by the number of scores.

Standard Deviation

Standard deviation is a measure of the dispersion or spread of a set of data points relative to its mean, indicating how spread out the data points are.