Higher insurance premium by the potential insured

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Reference no: EM131815639

1. Which of the following statements concerning dividend policy is true?

1. A constant payout ratio policy enables stockholders to accurately predict future dividends.

2. Since there is no evidence that one investor group is better than another, firms should change dividend policies frequently with no adverse impact stock price.

3. Firms with stable earnings, such as utilities, tend to have a low dividend payout ratio.

4. Unexpected dividend increase announcements are usually perceived as positive signals because they indicate an expected increase in future earnings of the firm.

2. Which of the following leads to the payment of a higher insurance premium by the potential insured?

Wedding of the potential insured

Obesity of the potential insured

Childbirth in the family of the potential insured

Job promotion of the potential insured

High-paying career of the potential insured

Reference no: EM131815639

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