Payout policy - Types of dividend policies

3 important questions on Payout policy - Types of dividend policies

What is the dividend payout ratio?

indicates the percentage of each dollar earned that a firm distributes to the owners in the form of cash. 

What is the constant payout ratio dividend policy?

A dividend policy based on the payment of a certain percentage of earnings to owners in each dividend period.

What is the regular dividend policy?

a dividend policy based on the payment of a fixed-dollar dividend in each period.

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