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The Skubin Candy Company is a highly profitable and rapidly growing maker of chocolates and other confections. Skubin’s management team is considering various dividend policies and is most concerned about the possibility of the dividend amount decreasing from one year to another and the negative reaction from investors that such a decrease may cause. Under which dividend policy would Skubin’s dividend be most likely to decline in a given year? A. Target payout ratio. B. Residual dividend. C. Longer-term residual dividend. |