Answer Happy

5. Dividendpractices In general, firms dividend practices fit into the categories listed in the following table constant payout ratio, low regular dividend plus extras, residual dividend policy, and stable, predictable dividend policies). Identify the category that each practice corresponds to in the table Low Regular Dividend Plus Extras Constant Payout Ratio Stable, Predictable Dividend Residual Dividend Practice Extensive Enterprises Inc. always pays the same percentage of its annual net income as dividends. o O o o Atherton Fuels Inc.'s annual dividend has increased by 1% every year since 1966 . ABCDE Telecom Inc. sets its dividend rather conservatively, but supplemental dividends are periodically issued when it finds itself with excess funds. InputOutzone Inc. pays dividends only if more earnings are available than are needed to support the optimal capital budget