Theadvantageofusingthelowregularandextradividendpolicyisthat
A. thefirmavoidsgivingtheshareholdersfalsehopes.
B. ifthefirmsearningsdrop,sodoesthedividendpayment.
C. theextradividendmaybecomearegularevent.
D. cyclicalshiftsinearningsmaybeavoided.
Answer:A
Theadvantageofusingthelowregularandextradividendpolicyisthat
A. thefirmavoidsgivingtheshareholdersfalsehopes. B. ifthefirmsearningsdrop,sodoesthedividendpayment. C. theextradividendmaybecomearegularevent. D. cyclicalshiftsinearningsmaybeavoided.