Example of a common type of dividend policy

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1. ________ divide ownership into more or fewer pieces and do not change the firm's investments or future earnings.

Stock splits

Stock dividends

Stock splits and stock dividends

Stock repurchases and stock splits

2. Which of the following descriptions is NOT an example of a common type of dividend policy?

A firm pays a certain percentage of its profits to shareholders each year, which means that the dividend fluctuates.

Throughout the year, stockholders receive a dividend for a stated amount plus a supplemental dividend depending on profits.

Stockholders can contact firms whenever they need extra cash to collect their dividends, for a small fee.

The firm pays a certain dollar amount as a dividend whenever it can afford to do so, and adjustments up or down in the dollar amount can be made by the manager.

Reference no: EM131356973

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