Study Questions
16–1. In the introduction, we pointed out that Emerson Electric Co. (EMR) had paid cash dividends for 53 consecutive years. Look up the company’s cash dividend for the most recent year. What is the dividend for that year?
16–2. In Regardless of Your Major: Firms Almost Never Decrease Their Dividend on page 528, we learned that firms try to sustain their dividend payout even during economic downturns. Use the internet to determine what Royal Dutch Shell did with respect to its dividend in 2014 and 2015. (Hint: Google “Shell dividend information,” and then click on “Historical dividend payments.”) Why do you think Shell took this action?
16–3. Explain what a firm’s dividend policy is as if you were talking to your grandmother, ...
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