Which Three of the Following Statements Are Correct

question 4

Multiple Choice

Which three of the following statements are correct?

• A) In a world with no external finance available, dividend policy should not follow a residual approach.
• B) The resolution of uncertainty argument on dividend policy is based on the premise that investors perceive more distant dividends as subject to more risk and therefore they prefer near- term dividends.
• C) Some shareholders are attracted to firms that follow dividend policies consistent with their objectives.
• D) A scrip dividend gives shareholders the opportunity to receive additional shares in proportion to their existing holding, instead of the normal cash dividend.

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Definitions:

Mary Whiton Calkins

An American psychologist who became the first woman to serve as the President of the American Psychological Association.

Margaret Floy Washburn

The first woman to earn a PhD in Psychology and known for her work in animal behavior and motor theory development.

Jean Piaget

A Swiss psychologist known for his pioneering work in child psychology and cognitive development.

Rosalie Rayner

An American psychologist, best known for her work with John B. Watson and the Little Albert experiment on conditioned emotional responses.