Which of the following is NOT a way that a firm can increase its dividend?

Question

Quizplus · Accepted Answer

Increasing its retention rate means that the firm is keeping more of its earnings instead of distributing them as dividends, so this would not result in an increase in the dividend. A firm can increase its dividend by increasing its dividend payout rate (paying a larger percentage of earnings as dividends), increasing its earnings (net income), or decreasing its shares outstanding (buying back shares).

Which of the Following Is NOT a Way That a Firm