Which of the Following Statements Is CORRECT

question 59

Multiple Choice

Which of the following statements is CORRECT?

• A) Historically,the tax code has encouraged companies to pay dividends rather than retain earnings.
• B) If a company uses the residual dividend model to determine its dividend payments,dividend payout will tend to increase whenever its profitable investment opportunities increase relatively rapidly.
• C) The more a firm's management believes in the clientele effect,the more likely the firm is to adhere strictly to the residual dividend model.
• D) Large stock repurchases financed by debt tend to increase expected earnings per share,but they also tend to increase the firm's financial risk.
• E) A dollar paid out to repurchase stock has the same tax benefit as a dollar paid out in dividends.Thus,both companies and investors should be indifferent between distributing cash through dividends and stock repurchase programs.

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Definitions:

Suicide Loss

The experience of losing someone to suicide, often accompanied by a range of complex emotions and grief.

Survivors

Individuals who have lived through a traumatic event, such as an accident, disaster, or personal assault, and are navigating the aftermath.

Public Address

A speech or lecture delivered to a large audience, typically for the purpose of informing, persuading, or commemorating.

Died By Suicide

A term used to describe the act of taking one's own life intentionally.