Theproblemwiththeregulardividendpolicyfromthefirmsperspectiveisthat
A. itborestheshareholders.
B. ifthefirmsearningsdrop,sodoesthedividendpayment.
C. evenwhenearningsarelow,thecompanymustpayafixeddividend.
D. itincreasestheshareholdersuncertainty.
Answer:C
Theproblemwiththeregulardividendpolicyfromthefirmsperspectiveisthat
A. itborestheshareholders. B. ifthefirmsearningsdrop,sodoesthedividendpayment. C. evenwhenearningsarelow,thecompanymustpayafixeddividend. D. itincreasestheshareholdersuncertainty.