A firm with stable earnings is usually more willing to ____.
A) retain more earnings
B) have a higher dividend payout ratio
C) have a sinking fund agreement
D) seek aggressive growth

Question

Quizplus · Accepted Answer

Firms with stable earnings are typically more willing to have a higher dividend payout ratio because they can predict their cash flows better, ensuring they can consistently pay dividends to shareholders.

A Firm with Stable Earnings Is Usually More Willing to ____