Which of the Following Statements About Dividend Policies Is Correct

question 48

Multiple Choice

Which of the following statements about dividend policies is correct?

• A) One reason that companies tend to avoid stock repurchases is that dividend payments are taxed at a lower rate than gains on stock repurchases.
• B) One advantage of dividend reinvestment plans is that they allow shareholders to avoid paying taxes on the dividends that they choose to reinvest.
• C) One key advantage of a residual dividend policy is that it enables a company to follow a stable dividend policy.
• D) The clientele effect suggests that companies should follow a stable dividend policy.
• E) Modigliani and Miller argue that investors prefer dividends to capital gains because dividends are more certain than capital gains.They call this the "bird-in-the hand" effect.

Assess the ideological shifts and policy adaptations in U.S. foreign policy in the post-Cold War world.

Analyze the implications of domestic policies on national and global economies.

Critically evaluate the effectiveness of U.S. military strategies and interventions in the Middle East.

Understand the changing attitudes towards LGBTQ+ rights in the early twenty-first century.

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Definitions:

Copy Constructor

A constructor method in object-oriented programming that initializes an object using another object of the same class.

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Math Class

A class in programming that provides methods for performing basic numeric operations such as exponentiation, logarithm calculations, and trigonometric functions.

ToString

A method in object-oriented programming languages that returns a string representation of an object.