The Advantage of Using the Low-Regular-And-Extra Dividend Policy Is That

question 55

Multiple Choice

The advantage of using the low-regular-and-extra dividend policy is that

• A) the firm avoids giving the shareholders false hopes.
• B) if the 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.

---

Definitions:

Throwing of Bones

A traditional practice in many cultures used for divination or fortune telling.

Traditional Practitioner

An individual who engages in the practice of using ancient or culturally specific methods for healing, often passed down through generations.

Invocation

The act of invoking something, such as calling upon a deity, spirit, or other supernatural force, usually for assistance or as an authority in a ritual.

Traditional Health Practitioners Act 22 of 2007

A law in South Africa that regulates the activities and training of traditional health practitioners.