Asked by Claire Layug on Jun 05, 2024
Verified
Maintaining a target retention ratio is a goal in a compromise dividend policy.
Retention Ratio
The proportion of net income that is retained in the business rather than paid out to shareholders as dividends.
Compromise Policy
A method or strategy of resolving a conflict or dispute whereby all parties involved make concessions.
- Absorb the essence and outcomes of a compromise dividend policy.
Verified Answer
AP
Abhishek PathakJun 11, 2024
Final Answer :
True
Explanation :
A compromise dividend policy aims to balance between retaining earnings for future growth and paying dividends to shareholders, thus maintaining a target retention ratio is indeed a goal in such a policy.
Learning Objectives
- Absorb the essence and outcomes of a compromise dividend policy.
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