Which of the Following Statements Is Most Correct

question 24

Multiple Choice

Which of the following statements is most correct?

• A) The bird-in-the-hand theory would predict that companies could decrease their cost of equity financing by raising their dividend payout.
• B) The clientele effect can explain why firms often change their dividend policies.
• C) One advantage of adopting a residual distribution policy (with all distributions in the form of dividends) is that it makes it easier for corporations to maintain dividend clienteles.
• D) Answers a and c are correct.
• E) None of the answers above is correct.

---

Definitions:

2010 U.S. Census

A decennial enumeration of the population of the United States conducted in 2010, providing detailed demographic information.

Racial Categories

Classifications of human beings based on physical characteristics, ancestry, genetics, or social relations, often constructed socially and politically.

Preventive

Actions or measures taken to reduce the risk of a problem or disease before it occurs.

Mental Disorders

A wide range of conditions that affect mood, thinking, and behavior, often leading to distress or impairment in daily functioning.