Empirical evidence about the behavior of financial managers suggest that that firms ________ repurchase activity and also ________ dividend payments.
A)smooth,smooth
B)smooth,do not smooth
C)do not smooth,do not smooth
D)do not smooth,smooth

Question

Quizplus · Accepted Answer

Empirical evidence suggests that firms do not smooth their repurchase activity but they do smooth their dividend payments. Therefore, the best choice is D, indicating that financial managers do not smooth repurchase activity but do smooth dividend payments.

Empirical Evidence About the Behavior of Financial Managers Suggest That