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4. Dividend practices Aa Aa In general, firms' dividend practices fit into the categories listed in the following table (constant payout ratio, low-regular-dividend-plus-extras, residual dividend
4. Dividend practices Aa Aa In general, firms' dividend practices fit into the categories listed in the following table (constant payout ratio, low-regular-dividend-plus-extras, residual dividend policy, and stable, predictable dividend policies). Identify the category that each practice corresponds to in the table Stable, Predictable Dividend Constant Low-Regular- Payout Ratio Dividend- Plus-Extras Residual dividend Practice Mainway Toys Co.'s dividends represent the portion of earnings left after it has made all profitable investments. Smith and Jones Inc. uses a policy that allows it to pay a small, consistent dividend in years when earnings are low or large capital investments are required. In some years, the firm pays an extra dividend when excess funds are available Atherton Fuels Inc.'s annual dividend has increased by 1% every year since 1966 Globex Corp. always pays the same percentage of its annual net income as dividends
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