High-Dividend-Payout Policy Increases Transaction Costs for Both the Firm and the Shareholder

question 80

True/False

High-dividend-payout policy increases transaction costs for both the firm and the shareholder compared to a simple sale of stock by the shareholder to get cash.

---

Definitions:

Negative Events

Unfavorable or adverse occurrences that can impact individuals or groups in various contexts.

Informational Reports

Documents or presentations that provide facts, data, and analysis without offering recommendations or conclusions.

Plans

Detailed proposals for doing or achieving something, often outlining the steps and resources required.

Organization's Functions

The primary activities and operations that a business or institution performs to achieve its objectives.