Which of the Following Should NOT Influence a Firm's Dividend

question 18

Multiple Choice

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

• A) The firm's ability to accelerate or delay investment projects.
• B) A strong preference by most shareholders for current cash income versus capital gains.
• C) Constraints imposed by the firm's bond indenture.
• D) The fact that much of the firm's equipment has been 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.

---

Definitions:

Fahrenheit

A scale of temperature on which water freezes at 32 degrees and boils at 212 degrees under standard conditions.

Celsius

A scale and unit of measurement for temperature where 0° represents the freezing point of water, and 100° represents the boiling point at sea level.

Body Mass Index

A numerical value derived from a person’s weight and height, used to classify underweight, normal weight, overweight, and obesity.

BMI

Body Mass Index, a measure calculated from a person's weight and height, used to classify underweight, normal weight, overweight, or obesity.