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:

Biased

Showing an unfair or prejudiced view for or against someone or something, often ignoring reasonable judgment.

Rephrase

To change the wording of a statement while maintaining its original meaning.

Group Presentation

A public exposition by several people, structured as a team effort to convey information or argue a point.

Plan Transitions

Developing a strategy to guide a process or period of change from one state or condition to another.