Firms can change dividends at any time, and in practice they vary the sizes of their dividends very frequently.

Name: Firms can change dividends at any time, and in practice they vary the sizes of their dividends very frequently.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Firms tend to be cautious about changing dividends frequently because investors often view dividends as a signal of a company's financial health and future prospects. Therefore, companies usually strive for stable or gradually increasing dividends over time.

Firms Can Change Dividends at Any Time, and in Practice