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    Financial Management Principles and Applications Study Set 2
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    Exam 16: Dividend Policy
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    In Response to a Temporary Decline in Earnings Per Share
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In Response to a Temporary Decline in Earnings Per Share

Question 128

Question 128

Multiple Choice

In response to a temporary decline in earnings per share, most companies would


A) decrease their cash dividend.
B) not decrease their cash dividend.
C) suspend their cash dividend.
D) substitute a stock dividend for the cash dividend.

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