Which of the Following Are Factors That Favor a High

question 23

Multiple Choice

Which of the following are factors that favor a high dividend policy?
I. Stockholders desire for current income
II. Tendency for higher stock prices for high dividend paying firms
III. Investor dislike of uncertainty
IV. High percentage of tax-exempt institutional stockholders

• A) I and III only
• B) II and IV only
• C) I, III, and IV only
• D) II, III, and IV only
• E) I, II, III, and IV

---

Definitions:

Safety Stock Computation

The calculation of a buffer quantity of inventory kept on hand to prevent stockouts, based on variability in demand and supply.

Standard Deviation

A statistical measure of the dispersion or variability within a data set, indicating how much individual values differ from the average.

Inventory Management

The practice of overseeing and controlling the ordering, storage, and use of components and finished products.

Inventory Classification

The process of categorizing inventory items based on their importance, such as ABC analysis which ranks items by their impact on total inventory cost.