Afb incrsquos dividend policy is to maintain a constant, Financial Management

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Afb incrsquos dividend policy is to maintain a constant

AFB, Inc.’s dividend policy is to maintain a constant payout ratio. This year AFB, Inc. paid out a total of $2 million in dividends. Next year, AFB, Inc.’s sales and earnings per share are expected to increase. Dividend payments are expected to:

A. increase above $2 million only if the company issues additional shares of common stock

B. decrease below $2 million

C. increase above $2 million

D. remain at $2 million

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Financial Management: Afb incrsquos dividend policy is to maintain a constant

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Financial Management: Afb incrsquos dividend policy is to maintain a constant

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