The Clientele Argument in Dividend Theory Implies That

question 11

Multiple Choice

The clientele argument in dividend theory implies that:

• A)investors are indifferent between dividends and capital gains.
• B)firms should pay out dividends only after accepting all capital budgeting projects with positive NPVs.
• C)the stock of low-payout firms will be held by investors seeking capital gains.
• D)the dividend payout should be set equal to the industry average.

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