Which One of the Following Statements Is Correct

question 38

Multiple Choice

Which one of the following statements is correct?

• A) Tax-exempt institutional stockholders prefer a high dividend policy.
• B) Distant dividends are worth more than near dividends.
• C) Firms paying low dividends are generally worth more than comparable firms paying high dividends.
• D) Investor preference for current income is an argument for a low dividend policy.
• E) One argument given in support of a low dividend policy is the existence of uncertainty.

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Definitions:

Depression

A mental health condition marked by an overwhelming feeling of sadness, isolation, and despair that interferes with daily functioning and quality of life.

Extinguish Fear

In psychology, the process of reducing or eliminating the fear response through repeated exposure to the feared object, situation, or thought without any negative consequences.

Biological Perspective

An approach in psychology that examines psychological disorders and behaviors based on biological factors, including genetics, brain chemistry, and anatomy.

Major Depressive Disorder

A mental health condition characterized by persistent feelings of sadness, loss of interest in activities, and a range of emotional and physical problems.