Payout policy - Types of dividend policies
3 important questions on Payout policy - Types of dividend policies
What is the dividend payout ratio?
indicates the percentage of each dollar earned that a firm distributes to the owners in the form of cash.
What is the constant payout ratio dividend policy?
A dividend policy based on the payment of a certain percentage of earnings to owners in each dividend period.
What is the regular dividend policy?
a dividend policy based on the payment of a fixed-dollar dividend in each period.
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