Which of the Following Statements Would Be Consistent with the Dividend

question 44

Multiple Choice

Which of the following statements would be consistent with the dividend irrelevance theory?

• A) There is no relationship between a firm's dividend policy and the value of its common stock.
• B) Perfect capital markets are assumed to exist which allow investors to buy and sell stock without incurring any transaction costs.
• C) Investors are indifferent whether stock returns come from dividend income or capital gains income.
• D) All of the above