Which One of the Following Statements Is Correct

question 232

Multiple Choice

Which one of the following statements is correct?

• A) Tax-exempt institutional stockholders prefer a high dividend policy.
• B) Distant dividends are worth more than near dividends.
• C) Firms paying low dividends are generally worth more than comparable firms paying high dividends.
• D) Investor preference for current income is an argument for a low dividend policy.
• E) One argument given in support of a low dividend policy is the existence of uncertainty.

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Definitions:

Major Obstacles

Significant barriers or challenges that hinder progress or achievement.

Emotional Standstill

A state where an individual feels emotionally stuck or incapable of progressing.

Denial

Failure to confront your problem; characteristic response by an alcoholic.

Anger

A strong feeling of annoyance, displeasure, or hostility triggered by what is perceived as unfairness, hurt, or threat.