Which of the Following Can Be a Benefit of the Clientele

question 37

Multiple Choice

Which of the following can be a benefit of the clientele effect?

• A) New investors who were previously uninterested in the stock may be attracted to it because of a policy change.
• B) If firms change their dividend policy, the investors who desire the previous policy will sell their shares.
• C) If the firms change their dividend policy, the investors will be unaffected by the change due to the dividend irrelevance theorem.
• D) If the firms change their dividend policy, it will maximize shareholder wealth.

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Definitions:

Worldly Authority

Worldly authority pertains to the power or control that is recognized in the material or secular aspects of life, distinct from spiritual or religious authority.

Abstract Teachings

Educational content or principles that focus on theoretical concepts rather than practical application.

Denomination

A recognized autonomous branch within a religion, distinct from others by its specific beliefs, practices, and organizational structures.

Differentiation

Differentiation refers to the process or mechanism by which entities (organisms, systems, social groups) become distinct from each other in structure or function.