If a firm always pays the same proportion of its earnings out as a dividend, this would be consistent with which dividend policy?

Question

Quizplus · Accepted Answer

A policy where a firm always pays the same proportion of its earnings out as a dividend is known as a target payout ratio policy. This means that the firm sets a specific target for the proportion of earnings to be paid out as dividends each year, and adjusts the dividend amount accordingly.

If a Firm Always Pays the Same Proportion of Its