4. Dividend practices 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. Constant Payout Ratio Low- Regular- Dividend- Plus- Extras Residual dividend Stable, Predictable Dividend Practice Globo-Chem Co. 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, The goal of Tobotics Inc.'s dividend policy is to reinvest earnings into the firm if the rate of return that the firm can earn on reinvested earnings exceeds the rate that investors, on average, can earn on other investments of comparable risk. If there are any funds remaining after this reinvestment, they are paid out in the form of dividends. Universal Drugmakers Inc.'s annual dividends increase by the same amount, or percentage, every year, C Omni Consumer Products Co. has received a lot of negative feedback from its investors because it uses a dividend policy that pays a set percentage of its net income even though the company's earnings fluctuate dramatically. The investors feel that this dividend policy creates too much uncertainty about the expected dividend each year