Which of the Following Does NOT Normally Influence a Firm's

question 37

Multiple Choice

Which of the following does NOT normally influence a firm's dividend policy decision?

• A) The firm's ability to accelerate or delay investment projects without adverse consequences.
• B) A strong preference by most of its shareholders for current cash income versus potential future capital gains.
• C) Constraints imposed by the firm's bond indenture.
• D) The fact that much of the firm's equipment is leased rather than bought and owned.
• E) The fact that Congress is considering changes in the tax law regarding the taxation of dividends versus capital gains.

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Definitions:

Sessions

Periods of time dedicated to specific activities, such as meetings, legislative activities, or academic classes.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell, typically upward sloping.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Supply

The total amount of a specific good or service that is available to consumers.