Dividend Irrelevance Theory Says That While Dividend Policy Does Not

question 39

True/False

dividend irrelevance theory says that while dividend policy does not affect a firm's value, it can affect the cost of capital.

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Definitions:

Glass Cliff

A phenomenon where women or minority group members are more likely to be promoted to leadership positions during times of crisis or organizational instability, which may set them up for failure.

Leadership Positions

Roles or titles within an organization that entail guiding, directing, or influencing others.

Women

Female humans; also refers to issues, concepts, and perspectives related to femininity or the female gender.

Uncertainty Avoidance

A cultural dimension that describes the degree to which societies are willing to tolerate uncertainty and ambiguity.