Which of the Following Statements Is True

question 16

Multiple Choice

Which of the following statements is true?

• A) The stable dividend payout ratio keeps the dollar amount of the dividend stable.
• B) Dividends usually do not increase unless management is convinced that the higher dividend can be maintained in the future.
• C) The dividend policy which allows for an extra dividend at year-end in prosperous years includes a fairly large regular dividend payment per share every year.
• D) All of the above are true.