Which of the following are true?
I) Firms have long-run target dividend payout ratios.
II) Dividend changes follow shifts in long-term, sustainable earnings.
III) Managers are reluctant to make dividend changes that might have to be reversed.
Select one:
a. I only
b. II only
c. III only
d. I, II and III
e. None of the above
d. I, II and III
Firms have long run target dividend payout ratios.
Dividend changes follow shifts in long run sustainable earnings. Transitory earnings changes are unlikely to affect the payout of dividends.
Managers are reluctant to make dividend changes that might have to be reversed. They are concerned about reversing back a dividend increase which cant be maintained.
Which of the following are true? I) Firms have long-run target dividend payout ratios. II) Dividend...
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