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:

Sexual Abuse

Illegal or coerced actions where an individual is forced or manipulated into unwanted sexual activity.

Inappropriate Comments

Remarks or statements that are not suitable for a given context, often causing discomfort or offense.

Inappropriate Touch

Physical contact that is not suitable for the situation or relationship, often making the recipient feel uncomfortable or violated.

Collectivist Societies

Societies that prioritize the group over individual goals and value interdependence, cooperation, and social harmony.