Dividend Policy Is Relevant Because

question 26

Multiple Choice

Dividend policy is relevant because:

• A) shareholders apply a lower discount rate to yield a lower valuation to funds retained in the business as opposed to paid out.
• B) shareholders apply a lower discount rate to yield a higher valuation to funds retained in the business as opposed to paid out.
• C) shareholders apply a higher discount rate to yield a higher valuation to funds retained in the business as opposed to paid out.
• D) shareholders apply a higher discount rate to yield a lower valuation to funds retained in the business as opposed to paid out.

---

Definitions:

Volunteering

Offering services or donating time to a cause or organization without financial compensation.

Delicatessen

A retail establishment that sells fine, unusual, or foreign prepared foods, including cold cuts, cheeses, and a variety of meats.

Death Certificate

An official document issued by a government that declares the date, location, and cause of a person's death.

Autopsy

A post-mortem examination to discover the cause of death or the extent of disease.