MM's Assertion That Dividend Policy Will Not Affect the Value

question 5

Multiple Choice

MM's assertion that dividend policy will not affect the value of the firm requires that dividend policy does not:

• A)Alter the retained earnings of the firm
• B)Affect investment and borrowing policies
• C)Allow the payout ratio to change
• D)Alter the number of outstanding shares

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Definitions:

Behavior Genetics

The field of study that examines the role of genetic and environmental influences on behaviors.

Personality

An individual’s characteristic pattern of thinking, feeling, and acting.

Genes

The biochemical units of heredity that make up the chromosomes; a segment of DNA capable of synthesizing a protein.

Evolutionary Perspective

An approach in psychology that emphasizes the role of natural selection and adaptation in the development of behavior and mental processes.