All of the Following Are Arguments for the Relevance of Dividends

question 59

Multiple Choice

All of the following are arguments for the relevance of dividends except:

• A)existence of issuance costs
• B)reduction of agency costs
• C)protection against dilution
• D)risk aversion

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Definitions:

Preventing Competition

Strategies or actions taken by companies or regulatory bodies to limit competition within a market, which can include monopolistic practices, exclusive agreements, or legal regulations.

Federal Trade Commission Act

United States federal law established in 1914 to prevent unfair competition, deceptive advertising, and monopolies, overseen by the Federal Trade Commission.

Clayton Act

A United States antitrust law enacted to prohibit certain actions that lead to anti-competitiveness, supplementing the Sherman Antitrust Act.

Fair Trade Act

Legislation aimed at achieving fair trading practices, protecting consumers, and ensuring ethical sourcing and production conditions.