Which of the Following Is the Most Important Factor Motivating

question 83

Multiple Choice

Which of the following is the most important factor motivating dividend policy for most large corporations?

• A)Changes in EPS
• B)Maintain constant dividend payout ratio
• C)Avoiding flotation costs of selling new stock
• D)Avoid reducing dividends per share

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Definitions:

Perceptions Of Fairness

Individual beliefs or attitudes regarding the equity or justice of actions, decisions, or distributions.

Rationality

The quality of being based on or in accordance with reason or logic.

Fixed Ratio

Fixed ratio refers to a schedule of reinforcement where a response is reinforced only after a specified number of responses, commonly used in behavior modification.

Reinforcement

In psychology, a process by which an individual's behavior is conditioned by rewards or punishments.