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    Corporate Dividend Policies - Assertions

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    Here are several assertions about typical corporate dividend policis. Which of them are true? Write out a corrected version of any false statements.

    a. Most companies set a target dividend payout ratio.
    b. They set each year's dividend equal to the target payout ratio times that year's earmings.
    c. Managers and investors seem more concerned with dividend changes than dividend levels.
    d. Managers often increase dividends temporarily when earnings are unexpectedly high for a year or two.

    Thanks!

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    Solution Preview

    Dividend Policy

    Dividend Policy. Here are several assertions about typical corporate dividend policies. Which of them are true? Write out a corrected version of any false statements.
    a. Most companies set a target dividend payout ratio. ...

    Solution Summary

    This problem answers various assertions about the dividend policy of the companies and explains them. The solution further discusses whether companies in a particular industry would have a high dividend payout ratio or a low dividend payout ratio.

    $2.19