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:

Polyphasic Behavior

This refers to the practice of breaking up sleep into multiple short periods throughout a 24-hour cycle, rather than having a single, long sleep period.

Type A Personality

A personality type characterized by high levels of competitiveness, self-driven ambition, impatience, and a high sense of urgency.

Stress-Related

Referring to conditions or factors that cause psychological or physical tension and strain.

Medical Insurance

A financial agreement where individuals or employers pay premiums in exchange for coverage of healthcare costs, reducing the burden of medical expenses.