Which of the Following Considerations Should NOT Be Related to Management's

question 72

Multiple Choice

Which of the following considerations should NOT be related to management's concerns when setting a dividend or share buy-back policy?

• A) Over the long term, how much does the company's level of earnings exceed its investment requirements? How certain is this level?
• B) Are the shares currently undervalued? Can the management add value to the company by initiating a share buy-back?
• C) Does the company have enough financial reserves to maintain the dividend policy in periods when earnings are down or investment requirements are up?
• D) Can the company quickly raise equity capital if necessary?

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Definitions:

Business Interests

Investments, actions, or engagements in commercial activities for the purpose of generating profits or achieving economic gains.

United States

The United States is a country comprising 50 states, a federal district, five major self-governing territories, and various possessions, known for its significant influence on global politics, economy, and culture.

Structural Violence

A type of violence where people are harmed by social systems or institutions that block their access to fundamental necessities.

Transnationals

Individuals or entities that operate across national borders, encompassing activities, businesses, or persons with connections in multiple countries.