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:

Pubescence

The condition of having covered or partially covered surfaces in fine hairs or fuzz, often observed on plants or young animals.

Ovarian Follicle

In animals, oocyte and surrounding follicle cells.

FSH

Follicle Stimulating Hormone (FSH) is a horm

Primitive Streak

A structure that forms in the early stages of embryonic development in birds and mammals, initiating gastrulation.