Question

Research conducted on firms' dividend policies over time support which one of the following conclusions?A. Aggregate dividends and stock repurchases have steadily declined in real terms.B. Dividends are currently paid by the vast majority of firms.C. Managers tend to smooth dividends.D. Stock prices tend to increase whenever anticipated changes in dividends occur..

Answer 1

Answer:

The correct option is C.

Explanation:

When the research is taken place or conducted on the dividend of the firm, so this support the conclusion that the managers tend to change or smooth the dividends as the research is conducted in order to find out that the established dividend policy will not affecting the business or firm in any manner and if something affecting then managers could change or smooth the dividends for the benefit of the business.

The Correct option is C.