Dividend Policy. "Risky companies tend to leave lower target payout ratios and more gradual adjustment rates" What is it meant by this statement, explain why.© BrainMass Inc. brainmass.com October 1, 2020, 8:03 pm ad1c9bdddf
Companies do not usually want to change the dividends. Change in dividends have information content that the firm is doing bad (dividends reduce) or good (dividends increase). Risky ...
The solution explains the dividend policy in relation to risky companies.