The Problem with the Regular Dividend Policy from a Firm's

question 60

Multiple Choice

The problem with the regular dividend policy from a firm's perspective is that ________.

• A) it regularly pays dividends which fluctuate with earnings
• B) if the firm's earnings drop, the dividends may be low
• C) even when earnings are low, the company must pay a fixed dividend
• D) it increases the shareholders' uncertainty

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Definitions:

Field

A basic unit of data storage in databases, representing a specific piece of information within a record.

Procedure

A set of coded instructions in a database or programming environment designed to perform a specific task or operation.

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