Which of the Following Would Be Most Likely to Lead

question 18

Multiple Choice

Which of the following would be most likely to lead to a decrease in a firm's dividend payout ratio?

• A) its access to the capital markets increases.
• B) its r&d efforts pay off, and it now has more high-return investment opportunities.
• C) its accounts receivable decrease due to a change in its credit policy.
• D) its stock price has increased over the last year by a greater percentage than the increase in the broad stock market averages.
• E) its earnings become more stable.