Which of the Following Conclusions About Dividend Policy Is Reasonable

question 16

Multiple Choice

Which of the following conclusions about dividend policy is reasonable?

• A)An inverse relation should exist between the amount of acceptable investments a firm has and the dividends remitted to investors.
• B)Management's actions regarding dividends might carry greater weight than a statement by management that earnings will be increasing.
• C)Management should avoid surprising investors when it comes to the firm's dividend decision.
• D)All of the above are reasonable.

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