You Notice That a Company Has Consistently Paid a Dividend

question 37

Multiple Choice

You notice that a company has consistently paid a dividend of $.20 per quarter except for the quarter one year ago when it paid $.52 when it had an unusually high level of earnings that the company did not believe was going to be sustainable into the future.Such a pattern is most indicative of what kind of dividend policy?

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

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