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Question
AFB, Inc. had earnings per share of $4 per share last year and paid a dividend of $1 per share. For the current year, AFB, Inc. generated earnings per share of $6 and paid a dividend of $1 per share. This is an example of what type of dividend policy?A) constant dividend payout ratio
B) stable dollar dividend per share
C) small, regular dividend plus a year-end extra
D) payout ratio equal to zero
Answer
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