Which of the Following Supports the "Bird-In-The-Hand" Dividend Theory

question 85

Multiple Choice

Which of the following supports the "bird-in-the-hand" dividend theory?

• A) Investors prefer dividends to capital gains because of the time value of money.
• B) Increasing a firm's dividends transfers risk and ownership from the current shareholders to new owners.
• C) Investment decisions are not influenced by dividend policy.
• D) Capital mix decisions are not influenced by dividend policy.

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Definitions:

Bystander Effect

A phenomenon where individuals are less likely to offer help to a victim when other people are present.

Interpret

To explain the meaning of something or translate it from one form to another, often requiring an understanding of context and intention.

Emergency

A situation that arises unexpectedly and requires immediate action to prevent or minimize potential harm or disaster.

Religiosity

The degree of a person's religious beliefs, involvement, practices, and devotion.