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Which one of these is a characteristic of a sensible payout policy? Increase regular dividends to distribute transitory cash flow increases Set the dividends high

Which one of these is a characteristic of a sensible payout policy?

Increase regular dividends to distribute transitory cash flow increases

Set the dividends high even if it means acquiring expensive external financing

Set the current regular dividends consistent with a 100 percent payout ratio

Do not reject positive NPV projects for the purpose of increasing cash dividends or buying back shares.

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