Which of the Following Is NOT a Way That a Firm

question 58

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

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Definitions:

Accounts Receivable Turnover

A financial metric indicating how many times a company collects its average accounts receivable balance in a year.

Cash Cycle

The duration of time it takes for a company to convert its investments in inventory back into cash through sales.

Cash Cycle

The period between the outlay of cash for goods/services and the return of cash through customer payments, reflecting the liquidity and efficiency of a company.

Accounts Payable Period

The average time it takes for a business to pay off its suppliers after receiving inventory or services.