Describe dividend policy

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State whether you would expect them to distribute a relatively high or low proportion of current earnings and whether you would expect them to have a relatively high or low price-earnings ratio.

a. High-risk companies.
b. Companies that have recently experienced a temporary decline in profits.
c. Companies that expect to experience a decline in profits.
d. "Growth" companies with valuable future investment opportunities.

Could you please explain if I am correct in my assumptions and if they are not correct, why?:

a. high proportion and high PE
b. low disbursement and high PE
c. low disbursement and high PE
d. low disbursement and high PE

Reference no: EM1337619

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