If Managers Make Dividend Decisions Only After Taking All Positive-NPV

question 8

Multiple Choice

If managers make dividend decisions only after taking all positive-NPV projects,they are following

• A) a constant payout ratio policy
• B) a low-regular-and-extra policy
• C) a constant nominal payment policy
• D) a residual payment policy

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Definitions:

Monetary Policy

A strategy implemented by a country's central bank to control the money supply, often targeting inflation or interest rates to promote economic stability and growth.

Phillips Curve Relationship

This relationship indicates an inverse correlation between unemployment rates and inflation, suggesting that lower unemployment leads to higher inflation and vice versa.

Economists

Professionals who study the production, distribution, and consumption of goods and services, often analyzing economic issues and trends.

Trade-offs

The evaluation and choice between competing alternatives in situations where having one benefit often means giving up another.