Which of Following Is a Reason for a Low-Dividend-Payout Policy

question 45

Multiple Choice

Which of following is a reason for a low-dividend-payout policy?

• A)Low-dividend-payout clientele are willing to pay a higher price per share than high-dividend payout clientele.
• B)Avoidance of transaction costs for selling shares
• C)Convenient and direct deposit of cash dividend
• D)Less need for additional costly outside funding

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Definitions:

Reticular Formation

A network of neurons located in the brainstem involved in regulating wakefulness, sleep, and various reflexes.

Medulla Oblongata

The lower portion of the brainstem controlling vital autonomic functions such as breathing, heart rate, and blood pressure.

Thalamus

A structure within the brain that acts as a relay station for sensory and motor signals to the cerebral cortex.

Vasoconstriction

The narrowing of blood vessels caused by contraction of the muscular wall of the vessels, which increases blood pressure.