Here are many assertions about typical corporate dividend policies. Which of them are true? Write out a corrected version of any false statements.
[A] Most companies set a target dividend payout ratio.
[B] They set each year's dividend equal to the target payout ratio times that year's earnings.
[C] Managers and investors seem more concerned with dividend changes than dividend levels.
[D] Managers often increase dividends temporarily when earnings are unexpectedly high for a year or two.

For each of following 4-groups of companies, state whether you would expect them to distribute a relatively high or low proportion of current earnings and whether you would expect them to have a relatively high or low price-earnings ratio.
[A] High-risk companies.
[B] Companies that have recently experienced a temporary decline in profits.
[C] Companies that expect to experience a decline in profits.
[D] "Growth" companies with valuable future investment opportunities.