The advantage of using the low-regular-and-extra dividend policy is that
A. the firm avoids giving the shareholders false hopes.
B. if the firm’s earnings drop, so does the dividend payment.
C. the extra dividend may become a regular event.
D. cyclical shifts in earnings may be avoided.
Answer:A
The advantage of using the low-regular-and-extra dividend policy is that
A. the firm avoids giving the shareholders false hopes. B. if the firm’s earnings drop, so does the dividend payment. C. the extra dividend may become a regular event. D. cyclical shifts in earnings may be avoided.