The Practice of Maintaining Relatively Constant Dividends Is Called ________

question 40

Multiple Choice

The practice of maintaining relatively constant dividends is called ________.

• A) dividend calibration
• B) dividend rollover
• C) dividend smoothing
• D) dividend rollbacks

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Definitions:

Intercompany Profits

Profits that arise from transactions between companies within the same group, which are not realized from the perspective of the consolidated entity.

Consolidation Method

An accounting method used when a parent company includes the financials of its subsidiary into its own financial statements.

Unrealized Profits

Profits that have been earned on paper through an investment's increased value but have not yet been realized through a sale.

After-Tax Dollar Value

The net value of an investment or income after all applicable taxes have been subtracted.