An advantage of a ________ is that it avoids giving shareholders false hopes.
A) constant-payout-ratio policy
B) regular dividend policy
C) low-regular-and-extra dividend policy
D) target dividend policy

Question

Quizplus · Accepted Answer

A low-regular-and-extra dividend policy involves paying a low regular dividend consistently, with the possibility of extra dividends when profits are higher. This approach avoids setting high expectations for dividends that may not be sustainable, thus preventing false hopes among shareholders.

An Advantage of a ________ Is That It Avoids Giving