The Advantage of Using the Extra Dividend Policy Is That

question 117

Multiple Choice

The advantage of using the extra dividend policy is that ________.

• A) a firm can avoid giving false hopes to shareholders
• B) if a firm's earnings drop, so does the dividend payment
• C) the extra dividend may become a regular event
• D) cyclical shifts in earnings may be avoided

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Definitions:

Allergic

Pertaining to or suffering from allergies, a condition where the immune system reacts abnormally to a foreign substance.

Mutating

The process of undergoing changes in the genetic sequence, leading to variations in the genetic makeup of organisms.

Genetically Engineered Corn

A type of corn that has had its genetic material altered using biotechnology to introduce desirable traits such as pest resistance and increased yield.

Allergens

Allergens are substances that can cause an allergic reaction by the immune system in some individuals, ranging from mild to life-threatening reactions.