A) The desired pattern of dividends over time when a company determines the proportion of profits to be paid out to shareholders, usually done periodically B) The selection of specific groups of shareholders to receive dividends this year C) The balance to be struck between paying interim dividends and final dividends D) The determination of the dividend policies of industrial firms by government, designed to encourage earnings retention for investment

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter11: Risk-adjusted Expected Rates Of Return And The Dividends Valuation Approach
Section: Chapter Questions
Problem 9QE
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1) What is meant by the term 'dividend policy'?
A) The desired pattern of dividends over time when a company determines the proportion of profits to be paid out to shareholders, usually done periodically
B) The selection of specific groups of shareholders to receive dividends this year
C) The balance to be struck between paying interim dividends and final dividends
D) The determination of the dividend policies of industrial firms by government, designed to encourage earnings retention for investment

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