Which of the Following Should NOT Influence a Firm's Dividend

question 18

Multiple Choice

Which of the following should NOT influence a firm's dividend policy decision?

• A) The firm's ability to accelerate or delay investment projects.
• B) A strong preference by most shareholders for current cash income versus capital gains.
• C) Constraints imposed by the firm's bond indenture.
• D) The fact that much of the firm's equipment has been leased rather than bought and owned.
• E) The fact that Congress is considering changes in the tax law regarding the taxation of dividends versus capital gains.

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Definitions:

Motivational Significance

The importance or value of a goal or object in driving an individual's motivation to pursue or avoid it.

Unconditional Positive Regard

An attitude of acceptance and respect on the part of an observer, no matter what a person says or does, especially used in client-centered therapy.

Social-Cognitive Theories

A framework for understanding behavior that emphasizes the role of cognitive processes and social influences.

Academic Success

Achievement of desired learning outcomes or the attainment of higher levels of education, often measured by grades, test scores, or degree completion.