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The president of Smith Brothers, Inc

Business

The president of Smith Brothers, Inc. wants a dividend policy that minimizes the likelihood of decreasing the company’s dividend per share. Which of the following policies should the CEO select?

a. regular dividend plus a year-end extra

b. constant dividend payout ratio

c. stable dollar dividend per share

d. All policies have the same likelihood of a dividend decrease because dividend changes

 are dependent on changes in earnings.

 

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