Which of the following is not an alternative dividend policy?
A) Constant payout
B) Stable dollar
C) Constant earnings
D) Passive residual

Question

Quizplus · Accepted Answer

Constant earnings is not an alternative dividend policy. The other options are common dividend policies used by companies. Constant payout refers to a fixed percentage of earnings being paid out as dividends, stable dollar refers to a fixed dollar amount being paid out as dividends, and passive residual involves paying dividends only after all investment opportunities with a positive net present value have been undertaken.

Which of the Following Is Not an Alternative Dividend Policy