Which of the Following Is True If Dividend Policy Is

question 75

Multiple Choice

Which of the following is true if dividend policy is irrelevant?

• A) Perfect capital markets exist.
• B) The clientele effect exists.
• C) The information effect exists.
• D) Tax deferral on capital gains exists.

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Definitions:

Informal Groups

Groups that emerge naturally due to the social interactions among the people in an organization, not officially formed by the organization.

Linking Pins

A concept in which managers are seen as linking pins connecting their subordinates with their superiors, facilitating communication and coordination.

Free-Riding

A phenomenon where individuals or entities benefit from resources, goods, or services without paying for the cost of the benefit.

Social Loafing

The phenomenon where individuals exert less effort when working in a group compared to when working alone, often due to perceived imbalances in contribution and accountability.