Which of the Following Hypotheses/theories Asserts That There Exists No

question 21

Multiple Choice

Which of the following hypotheses/theories asserts that there exists no optimal dividend policy, because a firm's dividend policy does not affect its value. 

• A)Dividend relevance theory
• B)Dividend irrelevance theory
• C)Clientele effect theory
• D)Signaling hypothesis
• E)Free cash flow hypothesis

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Definitions:

Finance Manager

A professional responsible for managing an organization's financial health by planning, directing, and coordinating investments.

Balanced Scorecard

A planning and management framework that ensures business operations are in line with the organization's vision and strategy, enhances communication internally and externally, and tracks the organization's progress towards strategic objectives.

Liquidity Measures

Financial metrics used to determine an entity's ability to pay off its short-term obligations with available assets without significant loss.

Short-Term Obligations

Financial liabilities or debts that are due to be paid within a short period, typically within a year.