A manufacturing ﬁrm that is highly sensitive to the economic growth of the national economy is most likely to adopt a _______ dividend policy.

Question

Quizplus · Accepted Answer

A manufacturing firm that is highly sensitive to the economic growth of the national economy is likely to face times of financial stress during economic downturns. As a result, it's most likely to adopt a cyclical dividend policy, which involves fluctuating dividend payments in response to the business's current situation. Consequently, a cyclical dividend policy allows the firm to maintain stability during uncertain times while rewarding stockholders with consistent dividend payments during favorable times.

A Manufacturing ﬁRm That Is Highly Sensitive to the Economic