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Explain why corporation managements desire sustained cash

Trend in Dividends. Many corporations attempt to maintain a sustained rather than a fluctuating cash dividend per share payment. The payment is gradually adjusted to changes in earnings over time. As a consequence, corporations apparently establish a target payout ratio range. Explain why corporation managements desire sustained cash dividends per share with an increasing trend and attempt to avoid fluctuating cash dividend payments.

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Cost Accounting: Explain why corporation managements desire sustained cash

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