Stable dividend policy would most commonly imply:
A)a high price/earnings ratio.
B)a stable dividend yield.
C)stable dividends per share.
D)stable earnings per share.
E)increasing dividends per share.

Question

Quizplus · Accepted Answer

Stable dividend policy means that the company maintains a consistent level of dividend payments over time. Therefore, option C - stable dividends per share - is the best choice. Option A is incorrect because the price/earnings ratio is not necessarily related to the dividend policy. Option B is not entirely accurate because dividend yield can vary even when the dividend policy is stable (depending on the stock price). Option D is incorrect because stable earnings per share do not necessarily mean that the dividend policy is stable. Option E implies increasing dividends, which is not consistent with a stable dividend policy.

Stable Dividend Policy Would Most Commonly Imply