The Viewpoint That Low Dividends Increase Stock Value Is Based

question 56

Multiple Choice

The viewpoint that low dividends increase stock value is based on which of the following principles?

• A) time value of money
• B) risk-return trade-off
• C) taxes bias business decisions
• D) the agency problem

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Definitions:

Black Sea

A large body of water situated between Eastern Europe and Western Asia, known for its strategic importance and rich history.

Financial Innovation

The creation or improvement of financial products, services, or processes.

Commodity Traders

Individuals or entities that buy and sell physical or financial commodities, aiming to profit from price fluctuations.

Bid-ask Spreads

The variation between the top price a buyer intends to pay (bid) and the bottom price a seller is prepared to take (ask) for an asset.