The Problem with the Residual Dividend Policy Ratio Is

question 127

Multiple Choice

The problem with the residual dividend policy ratio is

• A) investors might come to expect a specified amount.
• B) the dollar amount of the dividend fluctuates from year to year.
• C) management is reluctant to cut the dividend even if there are low profits in a year.
• D) all of the above are possible problems.

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Definitions:

Phobic Behaviors

Actions or reactions that are excessively fearful or aversive towards specific objects or situations, often resulting in avoidance.

Bandura

Bandura refers to Albert Bandura, a psychologist best known for his work on social learning theory and the concept of self-efficacy.

Ellis

Refers to Albert Ellis, an American psychologist who developed Rational Emotive Behavior Therapy (REBT), a precursor to cognitive behavioral therapy.

Aversive Conditioning

A psychological process of learning involving the use of unpleasant stimuli to stop or change unwanted behaviors.