Shareholders in General Prefer Large Dividends to Small Dividends

question 78

True/False

Shareholders in general prefer large dividends to small dividends.

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Definitions:

Actuarial Gains

Increases in the estimated value of a company’s pension plan benefits, resulting from changes in assumptions or improved performance.

Experience Adjustments

Changes to actuarial assumptions regarding pensions or other post-employment benefits based on differences between prior predictions and actual experience.

Actuarial Assumptions

Assumptions about future events affecting pension and insurance contracts, used to estimate the value of liabilities and premiums.

Defined Contribution Plans

Post-employment plans for which an employer pays fixed contributions into a separate entity (e.g., superannuation fund) on behalf of the employee.