Most Companies That Adopt a Target Payout Ratio Policy Modify

question 139

True/False

Most companies that adopt a target payout ratio policy modify their actual dividend payments because of the signaling effect.

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Definitions:

Stimulus

A change in the environment that influences or causes a response in an organism.

Minimum Intensity

The lowest level of stimulus intensity that is necessary to produce a perceptible sensation or response in the observer.

Backward Messages

A message recorded backward onto a track that is meant to be played forwards; often associated with subliminal or hidden messages in audio recordings.

Rock Records

Hard, solid materials of the earth's surface, containing a record of the planet's geological history.