A firm following the _____ dividend policy pays a specific dollar dividend each year or periodically increases the dividend at a constant rate.

Question

Quizplus · Accepted Answer

A firm following a stable, predictable dividend policy pays a consistent dividend each year or periodically increases the dividend at a constant rate. This provides investors with a reliable source of income and helps establish trust in the company's financial stability. This policy is also beneficial for the firm because it helps maintain a positive reputation in the market and attracts more investors.

A Firm Following the _____ Dividend Policy Pays a Specific