Most company managers overwhelming feel that:
A)dividends should be increased annually no matter what.
B)dividends should be flexible and adjusted annually in response to changes in the firm's earnings.
C)the personal taxes of their shareholders must be their primary consideration when setting dividend policy.
D)once a dividend is increased, it should not be decreased.
E)dividend smoothing is talked about but rarely affects dividend decisions.

Question

Quizplus · Accepted Answer

Most company managers believe that once a dividend is increased, it should not be decreased, as maintaining a stable or gradually increasing dividend is often seen as a sign of financial health and stability.

Most Company Managers Overwhelming Feel That