Even If a Company Does Not Officially Follow a Fixed-Dividend

question 50

Multiple Choice

Even if a company does not officially follow a fixed-dividend policy, dividend payments are

• A) extremely difficult to predict.
• B) very volatile and subject to economic conditions.
• C) fairly stable from one time period to another.
• D) directly tied to a company's P/E ratio.

---

Definitions:

Spreadsheet Approach

Refers to the use of spreadsheet software to model and analyze financial data, often used in budgeting, forecasting, and financial analysis.

Time To Maturity

The remaining duration until a financial instrument reaches its fixed expiration or redemption date.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.