Asked by Taylor Brazeau on May 05, 2024
Verified
Maintaining a target debt/equity ratio is a goal in a compromise dividend policy.
Debt/Equity Ratio
Debt/Equity Ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.
Compromise Policy
A strategy or approach that involves making concessions or finding a middle ground between different opinions or objectives in decision-making processes.
- Master the understanding and repercussions of a compromise dividend policy.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
True
Explanation :
A compromise dividend policy aims to balance between retaining earnings for growth and paying dividends to shareholders, and maintaining a target debt/equity ratio is often part of this strategy to ensure financial stability and investor confidence.
Learning Objectives
- Master the understanding and repercussions of a compromise dividend policy.
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