It Is Difficult for Small Firms to Apply for the Dividend

question 16

Multiple Choice

It is difficult for small firms to apply for the dividend valuation model because ____.

• A) the dividend valuation model depends on the Capital Asset Pricing Model, which small firms cannot use
• B) of limited access to the capital markets for new equity
• C) of prohibitively high common stock issuance costs
• D) small firms often pay little or no dividends

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Definitions:

Principles of Psychic Energy

Theoretical concepts in psychology that describe the dynamic allocation of mental or emotional effort.

Principle of Equivalence

The idea that different stimuli can be perceived as equivalent if they elicit the same response in a given context.

Determining Behavior

The factors or processes that influence or cause individuals to act in a particular way.

Alfred Adler

An Austrian medical doctor and psychotherapist known for founding the school of individual psychology, emphasizing the importance of feeling of inferiority and community feeling in the development of personality.