In Practice, Determinants of Dividend Policy Include, in Order of Importance

question 37

Multiple Choice

In practice, determinants of dividend policy include, in order of importance

• A) lack of good investment opportunities, influence of large institutional investors, maintaining a stable debt to assets ratio
• B) maintaining a constant dividend payout ratio, attracting retail investors, maintaining a consistent growth rate for dividends
• C) consistency with historical dividend policies, sustainable changes in earnings, tax burden on shareholders.
• D) wishes of large institutional investors, excess cash after investment needs are met, avoiding flotation costs for issuing new equity.

---

Definitions:

Natural Gas

A fossil fuel used as a source of energy for heating, cooking, and electricity generation, consisting mainly of methane.

Coal

A combustible black or brownish-black sedimentary rock, composed mostly of carbon and hydrocarbons, used as a fossil fuel.

Demand Curve

A graph that illustrates the relationship between the price of a good or service and the amount of it that consumers are willing and able to purchase at various prices, typically downward sloping.

Steak And Potatoes

Often used metaphorically to denote basic, but solid and satisfying elements or aspects of something.