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.

---

Definitions:

Instant

Occurring or done immediately and without delay.

Life Cycle Cost

The total cost of ownership of a product or system over its entire life, including initial purchase, operation, maintenance, and disposal costs.

Operating Cost

The total amount of money required to run a business, project, or device, excluding capital expenditures.

External Cost

Costs of a transaction that affect people other than the buyer or seller, which are not reflected in market prices.