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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 Globex Corp. always pays the same percentage of its annual net income as dividends Universal Drugmakers Inc.'s annual dividend has increased by 1% every year since 1966 InputOutzone Inc.'s dividends represent the portion of earnings left after it has made all profitable investments Business Logistics Corp. has volatile earnings and cash flows, so it pays a small dividend every year and then pays additional dividends in good years
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