One Possible Reason That Shareholders Often Insist on Higher Dividends

question 4

Multiple Choice

One possible reason that shareholders often insist on higher dividends is:

• A) They agree with Miller and Modigliani
• B) Tax consideration
• C) The stock market is efficient
• D) They do not trust managers to spend retained earnings wisely

---

Definitions:

Permissiveness With Affection

The standard in which premarital intercourse is viewed as permissible for both men and women if it occurs in the context of a long-term, committed, or loving relationship.

Sexual Intercourse

A physical act between individuals that involves the stimulation of genitals, typically resulting in sexual pleasure and/or reproduction.

Current Norms

The prevailing standards, behaviors, or beliefs in a society or social group at a given time.

Marriage Gradient

The tendency for men to marry women who are slightly younger, smaller, and lower in status, and women to marry men who are slightly older, larger, and higher in status.