Question
Which of the following examples best represents a passive dividend policy? a. The firm sets a policy such that the proportion of dividends paid from
Which of the following examples best represents a passive dividend policy?
| a. | The firm sets a policy such that the proportion of dividends paid from net income remains constant. | |
| b. | The firm pays dividends with what remains of net income after taking acceptable investment projects. | |
| c. | The firm sets a policy such that the quantity (dollar amount per share) of dividends paid from net income remains constant. | |
| d. | All of the above are examples of various types of passive dividend policies. |
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
