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Which of the Following Conclusions About Dividend Policy Is Reasonable

Question 16

Multiple Choice

Which of the following conclusions about dividend policy is reasonable?


A) An inverse relation should exist between the amount of acceptable investments a firm has and the dividends remitted to investors.
B) Management's actions regarding dividends might carry greater weight than a statement by management that earnings will be increasing.
C) Management should avoid surprising investors when it comes to the firm's dividend decision.
D) All of the above are reasonable.

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