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

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Definitions:

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.