Dividend Policy Is Relevant Because

question 26

Multiple Choice

Dividend policy is relevant because:

• A) shareholders apply a lower discount rate to yield a lower valuation to funds retained in the business as opposed to paid out.
• B) shareholders apply a lower discount rate to yield a higher valuation to funds retained in the business as opposed to paid out.
• C) shareholders apply a higher discount rate to yield a higher valuation to funds retained in the business as opposed to paid out.
• D) shareholders apply a higher discount rate to yield a lower valuation to funds retained in the business as opposed to paid out.

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Definitions:

Passive Participles

A form of a verb used to describe the state of being of the noun being acted upon, often seen in languages to show completed action or condition.

Sound Contrasts

Differences in sound that are used to distinguish meaning in languages, such as the contrast between the sounds of "p" and "b".

Human Language

A complex, dynamic system of conventional symbols organized into a structured form of communication shared among humans.

Morphemes

The minimal linguistic elements that have semantic value in a language.