When a Firm Maintains a Constant Dividend Policy, the Firm's

question 16

True/False

When a firm maintains a constant dividend policy, the firm's growth rate has no bearing on the external financing needed.

---

Definitions:

Available-For-Sale Securities

Securities that are held with the intent of selling them sometime in the future.

Discontinued Operations

Parts of a company's operations that have been disposed of or sold off, which are reported separately on the financial statements.

Gains

Financial benefits realized from selling assets for more than their purchase costs.

Losses

Reductions in asset value not related to the normal operations of the business.