What Is the Major Argument That Supports the "Bird in the Hand

question 9

Multiple Choice

What is the major argument that supports the "bird in the hand theory"?

• A)There is no difference between dividend yields and capital gains.
• B)The risk profile of the firm depends on the risk of its cash flows, not its dividends.
• C)Present value of growth opportunities are more volatile, hence increase the risk of the firm.
• D)Dividend payments signal the good standing of the firm.

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Definitions:

George Kelly

An American psychologist known for his development of personal construct psychology.

Interpersonal Circumplex

A model that categorizes and describes human interpersonal behaviors and personality traits along two dimensions: dominance and warmth.

Skills

The ability to do something well; expertise or competence in a particular activity or domain.

Challenges

In a general context, challenges are obstacles or difficulties that need to be overcome, often requiring effort, skill, or strategy.