BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -If a firm has relatively stable earnings, it is more likely to pay relatively larger dividend than a firm with relatively fluctuating earnings.

Detailed explanation-2: -Answer and Explanation: The correct answer is (d) are more stable than earnings. Dividends are usually more stable.

Detailed explanation-3: -Constant dividend per share The company distributes a fixed amount of cash dividends. It creates a reserve that allows them to pay a fixed dividend even when earnings are low or there are losses. The constant dividend policy is more suited for companies whose earnings remain stable over a number of years.

Detailed explanation-4: -Investor Benefits As an investor, companies that offer low dividend payouts are generally more stable, and dividends can be expected from them at either the same amount or higher.

Detailed explanation-5: -Stable Dividend Policy With this policy, shareholders receive a certain minimum amount of regular dividend on a scheduled basis, but the amount or rate is not fixed. Investors that are risk-averse and income-oriented typically prefer this policy and consider it a safe bet, even if the company pays low dividends.