Which of the following are false? I) Managers are reluctant to make dividend changes that might have to be reversed. II) Shifts in long-term sustainable earnings are followed by dividend changes. III) Firms have long-term target dividend payout ratios.

Which of the following are false? I) Managers are reluctant to make dividend changes that might have to be reversed. II) Shifts in long-term sustainable earnings are followed by dividend changes. III) Firms have long-term target dividend payout ratios.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter11: Risk-adjusted Expected Rates Of Return And The Dividends Valuation Approach

Section: Chapter Questions

Problem 8QE

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Question

Which of the following are false?
I) Managers are reluctant to make dividend changes that might have
to be reversed.
II) Shifts in long-term sustainable earnings are followed by dividend
changes.
III) Firms have long-term target dividend payout ratios.
Il only
I only
Il only
None

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