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Dividend Policy

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Dividend Policy: For each of the following 4 groups of companies, state whether you would expect them to distribute a relatively high or low proportion of current earnings and whether you would expect them to have a relatively high or low price-earnings ratio.

1.) High risk companies
2.) Companies that have recently experienced a temporary decline in profits.
3.) Companies that expect to experience a decline in profits.
4.) "Growth" companies with valuable future investment opportunities.

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This discusses the Dividend Policy

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1) High risk companies: Low dividend distribution and high price-earning ratio

2) Companies that have recently ...

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