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CTP · Question #284

(Topic 3) What do MOST companies try to maintain due to the signaling effect and clientele effect?

The correct answer is B. A stable dividend policy. See the full explanation below for the reasoning.

Question

  • (Topic 3)

What do MOST companies try to maintain due to the signaling effect and clientele effect?

Options

  • AA stable policy of retained earnings
  • BA stable dividend policy
  • CA consistent payment date
  • DA dividend reinvestment plan

How the community answered

(15 responses)
  • A
    7% (1)
  • B
    87% (13)
  • D
    7% (1)

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