If Dividend Clienteles Exist, Then ___________________________

question 342

Multiple Choice

If dividend clienteles exist, then ___________________________.

• A) It is all the more likely that dividend policy is irrelevant.
• B) Investors will prefer higher dividend payouts, on average.
• C) Homemade dividends are irrelevant.
• D) A firm should NOT follow a residual dividend approach.
• E) Any firm can boost its share price simply by increasing its dividend.

---

Definitions:

Shaping

A method of conditioning that uses reinforcements to guide behavior toward a desired outcome, by rewarding successive approximations of the target behavior.

Reciprocal Determinism

A concept in psychology that suggests that a person's behavior both influences and is influenced by personal factors and the social environment.

Self-actualization

Achieving one's full potential and realizing one's abilities and qualities as much as possible.

Psychodynamic Theory

A theoretical approach in psychology that emphasizes unconscious processes and conflicts as key to understanding human behavior and mental processes.