Which of the Following Statements Is Most Correct

question 37

Multiple Choice

Which of the following statements is most correct?

• A) The tax code encourages companies to pay large dividends to their shareholders.
• B) If your company has established a clientele of investors who prefer large dividends, the company is unlikely to adopt a residual dividend policy.
• C) If a firm follows a residual distribution policy (with all distributions in the form of dividends), holding all else constant, its dividend payout will tend to rise whenever the firm's investment opportunities improve.
• D) All of the statements above are correct.
• E) Answers b and c are correct.

---

Definitions:

Stereotyped

Having fixed and oversimplified images or ideas of particular types of people or things.

Fear

An unpleasant emotional response triggered by the perception of danger, threat, or harm.

Androcentric Cultures

Societies or cultural settings that prioritize male perspectives and experiences, often marginalizing female viewpoints.

Labeled

The action of assigning a name or category to someone or something, often in a simplifying or dismissive way.