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. Practice ABCDE Telecom 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. The goal of InputOutzone 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. Specialized Chemicals Inc.'s annual dividends increase by the same amount, or percentage, every year. Globex Corp. pays out a set percentage of its income each year in the form of dividends. This causes the firm's dividends to fluctuate from year to year. Constant Low-Regular- Payout Dividend- Ratio Plus-Extras O O Residual dividend Stable, Predictable Dividend

4. Dividend practices In general, firms' dividend practices fit into the categories isted in the following table (constant payaut ratio, low-regular-dividend-plus-extras, residual dividend policy, and stable, prectictable dividend policies): In general, fams dividend practices fit into the categories listed in the following toble (constant parout rabio, low-regularidividend plusiextras, residual dividend policy, and stable, predictable dividend policies)