If a Firm Caters to a Set of Investors with Its

question 144

Multiple Choice

If a firm caters to a set of investors with its dividend policy of paying consistently high dividends, what theory is consistent with this dividend policy?

• A)Dividend Aversion Theory
• B)Dividend Irrelevance Theory
• C)Residual Dividend Theory
• D)The Clientele Effect

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Definitions:

Gestalt Therapy

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment.

Mindfulness Techniques

A range of practices and exercises aimed at cultivating a state of focused attention and awareness on the present moment.

Here and Now

A term often used in psychotherapy emphasizing the importance of focusing on the present moment and the current circumstances in an individual's life.

Fulfill Full Potential

The achievement of the highest possible level of success or development in one’s personal, professional, or psychological capacities.