18.11.2010 Public by Maugar

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The dividend payout ratio may change from one year to the next. Spontaneous researches of funds refer to all of the below EXCEPT: Which of the following payment options makes the most sense as a general rule? If a firm employs both operating and financial leverage, any percent change in sales will produce a bester percent change in earnings per share.

A firm that is in a capital-intensive industry should use a higher order of financial leverage than a firm that way low levels of operating leverage. The liquidity of the firm will be unchanged. The firm will be relatively more liquid. The firm will be relatively less liquid.

The much larger change in earnings per share could be the result of: Dividends are less certain than capital gains. Investors are indifferent whether stock returns come from dividend income or capital gains income. Wealthy investors prefer corporations to defer dividend payments because capital gains produce greater after-tax income. Dividends are more certain than capital gains income.

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