The fact that flotation costs can be significant is an argument for:

A. a firm to issue larger dividends than its closest competitors.
B. a firm to maintain a constant dividend policy even if it frequently has to issue new
C. shares.
D. maintaining a constant dividend policy even when profits decline significantly.
E. maintaining a high dividend policy.
F. maintaining a low dividend policy and rarely issuing extra dividends.


Answer: E. maintaining a high dividend policy.

Business

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Fill in the blank(s) with correct word

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Indicate whether the statement is true or false

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