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:

Teamwork

The collaborative effort of a group to achieve a common goal or complete a task in the most effective and efficient way.

Informal Communication

The exchange of information unofficially within an organization, not following formal channels, structures, or rules.

Position of Power

A status or role that provides someone with the authority to influence others or make important decisions.

Consensus Leadership

A leadership style that emphasizes making decisions based on the agreement and cooperation of all members of a group.