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.

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Definitions:

Unemployment Figures

Statistical data representing the percentage or number of individuals in the labor force who are not currently employed but are seeking employment.

Market Opportunity

A favorable condition in the market that a business can exploit to grow its sales and increase profitability.

Proactive Change

Initiating changes or actions in anticipation of future problems or opportunities, rather than reacting to events after they happen.

Managing Change

The process of steering or directing an organization through a transition, such as a restructuring, technology implementation, or shift in culture or strategy.