How much should be distributed to stockholders

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Reference no: EM132033931

1. Which of the following issues arises when the decision to distribute income is being made?

a. How much should be distributed to stockholders?

b. Should the distribution be made as cash dividends or share repurchases?

c. Should the funds paid out from year to year be stable and dependable, or be allowed to vary with the firm's cash flows and investment requirements?

d. All of the above are issues that need to be considered when a firm is making its dividend policy decision.

e. None of these—these are all extraneous to the decision.

2. Clienteles are different groups of stockholders who prefer different dividend payout policies. True or false?

3. The target payout ratio is the target percentage of net income paid out as cash dividends. True or false?

Reference no: EM132033931

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