If a company is using constant payout ratio policy of dividend, the amount of dividend would:

CS Executive · Financial and Strategic Management · PYQS · December 2021
If a company is using constant payout ratio policy of dividend, the amount of dividend would:
(A) decrease with an increase in income
(B) increase with an increase in income
(C) remain same
(D) can't be determined

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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