Compare the Stable Dividend Payout to the Residual Dividend Policy
What will be an ideal response?
Answer: A stable dividend payout policy tries to avoid unpleasant surprises to the company's shareholder clientele who may depend on the dividends to meet their income needs. Companies who follow this policy consider the predictability of dividends more important than the size or payout ratio and only increase dividends when they are quite certain that they can maintain the increased payout. A company that followed a residual dividend policy would only pay a dividend after all operational and investment needs had been met. Such a policy would lead to large year to year fluctuations in the dollar amount of dividends. The residual dividend policy is much less popular with investors and therefore with managers as well.
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A contract that calls for the investor to (possibly) sell securities on a future date is called a ________
A) short contract B) long contract C) hedge D) micro hedge
Which of the following may be a reason for an employee's job termination?
A. a company is downsized or fails B. poor performance by the employee C. the employee accepts a job with a different company D. all the above