The problem with the regular dividend policy from the firm’s perspective is that
A. it bores the shareholders.
B. if the firm’s earnings drop, so does the dividend payment.
C. even when earnings are low, the company must pay a fixed dividend.
D. it increases the shareholders’ uncertainty.
Answer:C
The problem with the regular dividend policy from the firm’s perspective is that
A. it bores the shareholders. B. if the firm’s earnings drop, so does the dividend payment. C. even when earnings are low, the company must pay a fixed dividend. D. it increases the shareholders’ uncertainty.