A sensible payout policy
A) sets dividends at a level just equal to the amount of new equity that can be raised annually.
B) sets dividends based on net income,not cash flows.
C) consistently varies its target payout ratio on an annual basis.
D) pays out all free cash flows over time.
E) cuts positive NPV investments,if needed,to steadily increase its dividend.
Correct Answer:
Verified
Q42: Assume the stockholders of EX stock are
Q43: A firm has a market value equal
Q44: Lisa purchased 200 shares of ABC stock
Q44: A reverse stock split associated with a
Q45: A fixed repurchase strategy
A)increases a company's market
Q46: The highest and lowest prices at which
Q48: Litner's model supports the belief that
A)dividends are
Q50: Reverse stock splits can be used to
A)adjust
Q51: A firm has a market value equal
Q52: Which statement is true?
A)Dividends are evenly distributed
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents