Which One of the Following Is a Drawback of Cash

question 90

Multiple Choice

Which one of the following is a drawback of cash dividends?

• A)Firms may have to obtain additional external financing which would not be required in the absence of the dividends.
• B)Stock prices tend to increase as annual dividend amounts increase.
• C)Cash dividends support stock prices.
• D)Dividends tend to lower agency costs.
• E)Dividend-paying firms tend to attract a wider field of investors than do non-dividend-paying firms.

Apply knowledge to understand the preparation of basic journal entries for various transactions.

Understand the process of conducting day trading analysis using PHStat for investment decisions.

Analyze various statistical measurements such as expected monetary value, standard deviation, and return to risk ratio for different investment options.

Apply knowledge of decision trees to evaluate R&D process decisions in the pharmaceutical industry.

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Definitions:

Artwork

Visual art objects or pieces created by an artist, which can include paintings, sculptures, or illustrations.

High-value

Denoting items or activities that are of significant worth, importance, or benefit.

Low-value

Refers to products, services, or attributes perceived as offering minimal benefit or worth in comparison to their cost or significance.

Combinations

The act of combining or joining two or more elements together to form a whole.