Which of the Following Would Generally Coincide with the Overall

question 12

Multiple Choice

Which of the following would generally coincide with the overall priorities of a compromise dividend policy?
I.allowing the debt-equity ratio to increase temporarily to avoid a dividend cut
II.forgoing a major positive investment to avoid the issuance of new shares
III.maintaining a constant debt-equity ratio by selling additional shares as needed
IV.limiting positive net present value projects in order to reach a target dividend payout ratio

• A)II and IV only
• B)I and III only
• C)III and IV only
• D)II only
• E)I only

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