Asked by

Jonathan Hernandez
on Dec 09, 2024

verifed

Verified

Which one of the following is considered to be the primary goal of a compromise dividend policy?

A) The avoidance of cutting back on positive net present value projects.
B) Maintaining a constant debt-equity ratio.
C) The avoidance of reducing the dividend amount.
D) Maintaining a target dividend payout ratio.
E) Avoiding the need to sell new equity.

Compromise Dividend Policy

A dividend policy that seeks a balance between retaining earnings for company growth and paying dividends to shareholders, accommodating various investors' preferences.

Net Present Value

A financial metric that calculates the present value of all future cash flows (positive and negative) expected from a project or investment, discounted back to their present value.

Debt-Equity Ratio

A measure showing the relative contributions of debt and shareholders' equity in a company’s asset financing.

  • Understand and expound on the significant aspects that sway decisions on dividend policies within businesses.
verifed

Verified Answer

AG
Alayshia GreenDec 15, 2024
Final Answer:
Get Full Answer