If a Company Strictly Adheres to a Constant Payout Ratio

question 82

Multiple Choice

If a company strictly adheres to a constant payout ratio policy,its dividend amount will

• A) remain constant period by period
• B) vary as earnings vary
• C) steadily increase over time
• D) move up in a "stair step" pattern over time.

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Definitions:

Eighteenth Century

The century that spans from January 1, 1701, to December 31, 1800, marked by significant events including the Enlightenment, the American Revolutionary War, and the beginning of the Industrial Revolution.

Middle Passage

The sea journey undertaken by slave ships from West Africa to the West Indies, notorious for its brutality and high mortality rates.

Trans-Atlantic Trade

Trans-Atlantic Trade refers to the trade that occurred across the Atlantic Ocean, especially notable for the exchange of goods, slaves, and commodities between Africa, Europe, and the Americas from the 16th to the 19th centuries.

Triangular Trade Route

A historical trade system involving the exchange of goods and enslaved people among Europe, Africa, and the Americas.