The Fundamental Question in Dividend Policy Is ____

question 63

Multiple Choice

The fundamental question in dividend policy is ____.

• A) the tax consideration
• B) the amount of growth the firm considers optimal
• C) not violating any restrictive covenants
• D) determining what portion of earnings will be paid out

---

Definitions:

Attraction

A force or influence that draws individuals together, which can be based on physical attributes, personality, similarity, or other factors.

Cannon-Bard Theory

A theory of emotion that argues emotions and physiological responses occur simultaneously.

Conscious Experience

The range of experiences that one is aware of, including thoughts, feelings, perceptions, sensations, and the surrounding environment at any given moment.

Physiological Arousal

Physiological arousal involves the activation of the body's autonomic nervous system, leading to physical changes such as increased heart rate, blood pressure, or adrenaline in response to stimuli.