under rigid dividend policy the rate is dividend is _____ A balanced. B. high. C none. D. lesser
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Answer:
Answer is Balanced
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Under rigid dividend policy the rate of dividend is B. high.
Explanation for the answer:
- Rigid dividends need not mean higher dividends.
- Under a rigid dividend policy, dividends are higher for some firms in a given year.
- They have excellent investment opportunities but rigidity indicates they will forgo them to maintain the dividend.
- Though, some other firms will have surplus cash.
- Hence, the correct answer among all the options is B. high.
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