Which of the Following Statements Describes the Finding from Academic

question 6

Multiple Choice

Which of the following statements describes the finding from academic studies on corporate dividend policy?

• A) Managers tend to increase regular cash dividends in response to unexpectedly high earnings.
• B) Managers tend to maintain a level dividend payment at an amount that they are relatively certain they can maintain in the future.
• C) Managers tend to focus on dividends rather than stock repurchases because institutional investors tend to prefer regular dividends.
• D) Dividend policy doesn't matter because investors can re-create dividends by selling a fraction of their shares.

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Definitions:

Retinal Image

The image projected onto the retina, the light-sensitive tissue at the back of the eye, which is then processed by the brain to form visual perception.

Shelf

A flat, horizontal surface designed for the storage and display of items.

Template Matching

A theory or process in perception or cognition positing that the mind matches incoming stimuli to templates or patterns in the brain to recognize objects.

Featural Analysis

The examination of discrete elements or features within a stimulus to identify or categorize it.