Which One of the Following Statements Related to Dividend Policy

question 20

Multiple Choice

Which one of the following statements related to dividend policy is correct?

• A) The primary question related to dividend policy is whether or not a dividend should ever be paid.
• B) Both dividends and dividend policy are irrelevant.
• C) Dividend policy focuses on the timing of dividend payments.
• D) Homemade dividends increase the importance of a company's dividend policy decisions.
• E) Whether or not a company ever pays a dividend is irrelevant to equity valuation.

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Definitions:

Values

Fundamental beliefs that guide behaviors and decision-making processes.

Organizational Culture

The shared values, beliefs, norms, and practices that shape the social and psychological environment of a business or organization.

Dominant Values

The most powerful or influential values held by a society, organization, or group, shaping behaviors and norms.

National Culture

The set of shared values, traditions, beliefs, laws, and practices that characterizes a country or nation.