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SLMoffatt,Inc

Question 32

Multiple Choice

S.L.Moffatt,Inc.has paid a quarterly dividend of $1.20 per share for the last ten quarters.Which one of the following is most apt to cause the firm to reduce the amount of its next dividend payment?


A) decrease in the next quarter's revenue
B) decrease in the next quarter's net income
C) loss of a major customer which lowers the firm's outlook for the next few years
D) major lump sum cash outflow next month to settle a class action product liability lawsuit on a product that is no longer produced
E) decrease in the number of new projects under consideration as compared to last year

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