Which of the Following Is Not a Way That a Firm

question 41

Multiple Choice

Which of the following is not a way that a firm can increase its dividend?

• A) By increasing its retention rate
• B) By decreasing its shares outstanding
• C) By increasing its earnings (net income)
• D) By increasing its dividend payout rate

---

Definitions:

Decreases in Current Assets

The reduction in the value or amount of the assets that a company expects to convert into cash within one year.

Decreases in Current Assets

Reductions in the assets that a company expects to convert into cash, sell, or consume within one year or the operating cycle, whichever is longer.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to find net cash provided by operating activities.

Net Cash Flows

The difference between a company's cash inflows and outflows within a specific period.