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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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