istributed even if the company recorded losses in the last period. c) The balance between curren
istributed even if the company recorded losses in the last period. c) The balance between curren
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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5. An optimal dividend policy is one that takes into consideration that:
a) Dividends should only be distributed based on the profits of the last period.
b) Dividends can be distributed even if the company recorded losses in the last period.
c) The balance between current dividends and future growth is achieved, maximizing the value of the company.
d) It manages to attract investors who have a predilection for relatively high risks.
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