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Which Type of Dividend Payment Policy Has the Disadvantage That

Question 98

Multiple Choice

Which type of dividend payment policy has the disadvantage that if a firm's earnings drop or if a loss occurs in a given period, dividends may be low or nonexistent?


A) constant-payout-ratio policy
B) regular dividend policy
C) low-regular-and-extra dividend policy
D) stock dividend policy

Correct Answer:

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