Which of the following is NOT a way that a firm can increase its dividend?

Question

Quizplus · Accepted Answer

Increasing the retention rate means that the firm is keeping a larger portion of its earnings and not distributing them as dividends, therefore it does not increase the dividend payout. The other options do have an effect on the dividend payout: decreasing shares outstanding reduces the total amount of dividends needed to be paid out, increasing dividend payout rate means paying a higher percentage of earnings as dividends, and increasing earnings means that there is more money available to pay out as dividends.

Which of the Following Is NOT a Way That a Firm