Which of the Following Argues That Dividends That the Firm

question 89

Multiple Choice

Which of the following argues that dividends that the firm has committed to pay are less risky to risk-averse investors than are potential future capital gains?

• A) Dividend irrelevance theorem
• B) Dividend indifference theory
• C) Bird-in-the-hand theory
• D) Jobs and Growth Tax Relief Reconciliation Act

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Definitions:

Ethical View

A perspective based on beliefs about what is right and wrong that influences decision-making and behavior.

Ethics

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behavior.

Right And Wrong

Principles that govern the morality, ethics, and legality of actions or decisions.

Personal Morals

Refers to an individual's set of values and principles that guide their behavior, distinguishing between right and wrong.