It Has Been Argued That Investors Prefer High-Payout Companies Because

question 13

True/False

It has been argued that investors prefer high-payout companies because dividends are more certain (less risky)than the capital gains that are supposed to come from retained earnings.However,Miller and Modigliani say that this argument is incorrect,and they call it the "bird-in-the-hand fallacy." MM base their argument on the belief that most dividends are reinvested in stocks,hence are exposed to the same risks as reinvested earnings.

Identify the characteristics and implications of supranational laws on member states.

Understand the impact of government control over resources on property rights.

Understand the concept of net present value and its application in investment decision-making.

Comprehend the definition and significance of annuities in financial calculations.

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Definitions:

Canadian Human Rights Act

A statute of Canada that prohibits discrimination on the basis of race, color, religion, sex, age, and other grounds.

Canadian Human Rights Commission

A government agency responsible for monitoring and enforcing anti-discrimination laws in Canada.

Pay Equity Program

Initiatives or policies aimed at ensuring that employees are compensated equally for work of equal value, regardless of gender or other factors.