A Company That Seeks to Pay a Fixed Dollar Amount

question 86

Multiple Choice

A company that seeks to pay a fixed dollar amount in dividends each period

• A) will likely experience a decrease in its payout ratio over time.
• B) will likely experience an increase in its payout ratio over time.
• C) will likely experience stable additions to retained earnings over time.
• D) will likely violate capital impairment restrictions frequently.

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