The Fact That Flotation Costs Can Be Significant Is Justification

question 41

Multiple Choice

The fact that flotation costs can be significant is justification for:

• A) a firm to issue larger dividends than its closest competitors.
• B) a firm to maintain a constant dividend policy even if it frequently has to issue new shares of stock to do so.
• C) maintaining a constant dividend policy even when profits decline significantly.
• D) maintaining a high dividend policy.
• E) maintaining a low dividend policy and rarely issuing extra dividends.

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Definitions:

Environmental-adaptive Strategy

Environmental-adaptive Strategy involves an organization's approach to adapting and evolving in response to changes and challenges in its external environment, rather than attempting to change the environment itself.

Shared Power Strategy

A management approach that distributes decision-making authority and power more evenly across levels within the organization.

Collaborative Strategy

An approach to business that emphasizes working together with partners, teams, or stakeholders to achieve shared goals or solve problems.

Planned Change Process

The deliberate effort to improve an organization's operations or direction through specific methodologies and strategies.