The Problem with the Residual Dividend Policy Ratio Is

question 127

Multiple Choice

The problem with the residual dividend policy ratio is

• A) investors might come to expect a specified amount.
• B) the dollar amount of the dividend fluctuates from year to year.
• C) management is reluctant to cut the dividend even if there are low profits in a year.
• D) all of the above are possible problems.

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Definitions:

State Militias

Military forces maintained by states within the U.S. for protection and emergency situations, distinct from the federal armed services.

Locke's Natural Rights

The philosophical concept, proposed by John Locke, that individuals inherently possess rights to life, liberty, and property, which governments must protect.

Pursuit of Happiness

A fundamental right mentioned in the Declaration of Independence, representing the freedom to seek personal joy and well-being in a way that is self-determined.

American Morale

The spirit, attitude, and confidence of the American people or military forces, often discussed in the context of historical events or conflicts.