Which of the Following Statements About Dividend Policies Is Correct

question 12

Multiple Choice

Which of the following statements about dividend policies is correct?

• A) Stock splits, stock dividends, and reverse splits are all designed to make the firm's shares more appealing to the average investor.
• B) Dividend reinvestment plans are designed to aid in the distribution of stock dividend.
• C) The key advantage of a residual dividend policy is that it enables a company to follow a stable dividend policy.
• D) The main goal of the share repurchases is solely to avoid taxes for investors.

---

Definitions:

Spread of Electricity

The expansion or dissemination of electric power and its application throughout societies, significantly impacting industrialization, communication, and daily life.

Economy Surged

A term describing a significant and rapid increase in the economic activity and growth of a region or country, often measured by GDP growth.

High Tariff

A government-imposed tax on imported or exported goods, typically used to protect domestic industries from foreign competition or to generate revenue.

National Debt

The total amount of money that a country's government has borrowed, by various means.