Which type of dividend payment policy has the disadvantage that if a firm's earnings drop or if a loss occurs in a given period, dividends may be low or nonexistent?

A) constant-payout-ratio policy
B) regular dividend policy
C) low-regular-and-extra dividend policy
D) stock dividend policy

A

Business

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Vertical analysis involves comparing each figure in the financial statements with a corresponding figure of the previous year

Indicate whether the statement is true or false

Business

A corporation raises $500,000 in long-term debt to acquire additional plant capacity. This is considered as ________

A) an investment cash flow B) a financing cash flow C) a financing cash flow and investment cash flow, respectively D) a financing cash flow and operating cash flow, respectively

Business