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Firms following a constant payout ratio dividend policy a. will have a stable dividend payment when earnings fluctuate. b. will have a fluctuating dividend policy
Firms following a constant payout ratio dividend policy
a. | will have a stable dividend payment when earnings fluctuate. |
b. | will have a fluctuating dividend policy when earnings are stable. |
c. | will have a higher cost of equity when earnings are stable compared to other similar firms. |
d. | will have a lower cost of equity when earnings are stable compared to other similar firms. |
e. | will have a fluctuating dividend payment when earnings fluctuate. |
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