Which of the following policies represents a compromise between a stable, predictable dividend and a constant payout ratio?

Question

Quizplus · Accepted Answer

The Low regular dividend plus extras policy is a compromise between a stable, predictable dividend and a constant payout ratio. Under this policy, a company sets a low regular dividend that it can sustain even in tough times and then pays extras on top of this dividend when it has excess funds available. This allows the company to maintain a predictable dividend while also providing investors with the opportunity for higher payouts when the company is doing well.

Which of the Following Policies Represents a Compromise Between a Stable