All of the Following Factors Support the Proposition That Dividend

question 53

Multiple Choice

All of the following factors support the proposition that dividend policy matters EXCEPT

• A) investors desire to minimize and defer taxes, and capital gains get preferential tax treatment over dividend income.
• B) perfect capital markets.
• C) information asymmetry exists between shareholders and managers.
• D) flotation costs significantly increase the cost of new common stock compared to retained earnings.

---

Definitions:

Paraphrase

Rephrasing a set of ideas or a narrative in one's own words, differentiating from quoting by aiming to convey the original message more clearly or simply.

Summarization

The act of briefly stating the main points of something, often used in therapy to clarify and reflect on the content of a session.

Cultural Groups

Denotes groups of people sharing common cultural characteristics, traditions, language, or heritage.

Nonverbal

Pertaining to communication or interactions that do not involve words but rely on body language, facial expressions, gestures, and other visual cues.