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:

Bounded Rationality

A concept suggesting that the cognitive limitations of the mind restrict the rationality of decision-making.

Evaluating Alternatives

The process of assessing and comparing different options or courses of action in order to make an informed decision.

Cognitive Style

The preferred way an individual processes information, reflecting differences in perception, memory, and problem-solving skills.

Ecological Demands

Requirements or pressures placed on organisms by their environments, affecting their behavior, survival, and reproduction.