The Dividend Policy That States Smoothing of the Dividend Stream

question 57

Multiple Choice

The dividend policy that states smoothing of the dividend stream in order to minimize the effect of company reversals is called the

• A) increasing-stream hypothesis of dividend policy.
• B) stable dividend policy.
• C) clientele effect policy.
• D) residual payout policy.

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Definitions:

Persuasive Process

The strategy of influencing or convincing others to adopt a certain viewpoint or to take a specific action.

AIDA

Stands for Attention, Interest, Desire, and Action; a marketing model that outlines the process for creating effective advertisements and promotions.

Persuasive Message

Communication aimed at influencing the thoughts, beliefs, or actions of others through reasoned argument.

Product

Any good, service, or idea that is offered to the market for sale, use, or consumption, and can satisfy a need or want.