A Dividend Policy Where the Company Pays Out a Fixed

question 33

Multiple Choice

A dividend policy where the company pays out a fixed percentage of their earnings is called a

• A) constant nominal payout policy
• B) target dividend payout ratio policy
• C) constant payout ratio policy
• D) low-regular and extra policy

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Definitions:

Inductive Argument

A type of reasoning in which the premises seek to supply strong evidence for (not absolute proof of) the truth of the conclusion.

Positive Correlation

The incidence of one event increases when the second one increases.

Occurrence of Events

The happening or taking place of incidents or actions, often considered in terms of their frequency or significance.

Analogies

A form of reasoning or argumentation in which similarities between two different things are drawn to explain or clarify a concept.