Research has shown all of the following to be true of the way corporations determine dividends except:
A)firms have short-run target payout ratios.
B)firms have long-run target payout ratios.
C)the focus is more on dividend changes rather than absolute dividends.
D)managers try to avoid dividend changes that may need to be reversed.

Question

Quizplus · Accepted Answer

Firms typically have long-run target payout ratios rather than short-run ones. This means they aim for a consistent dividend payout ratio over time, adjusting dividends gradually to align with their long-term financial goals rather than making frequent changes based on short-term financial performance.

Research Has Shown All of the Following to Be True