MANAGEMENT

Detailed explanation-1: -Answer and Explanation: The correct answer is (d) are more stable than earnings. Dividends are usually more stable.

Detailed explanation-2: -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-3: -A stable dividend policy is where an investor receives dividends at least once a year irrespective of market fluctuations. It helps to keep the market value of stocks stable. It instils confidence in investors. It provides a source of income for those investors who rely on dividends to cover their day-to-day costs.

Detailed explanation-4: -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.