Which One of These Statements Is True

question 49

Multiple Choice

Which one of these statements is true?

• A)Managers tend to benefit more from decreasing a firm's size rather than increasing its size.
• B)Dividend payout policies are always set according to the best interest of the shareholders.
• C)Acquisitions are generally believed to be an excellent alternative to dividends.
• D)The IRS code discourages the accumulation of surplus cash thereby encouraging dividends.
• E)Current tax law favors dividends over repurchases from the stockholders' point of view.

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Definitions:

Highly Educated Workers

Highly educated workers are individuals who have attained a high level of education, often including university degrees, and possess advanced knowledge and skills in their fields.

Median Income

The middle income in a list of incomes, where half of the incomes are higher and half are lower.

Gini Coefficient

A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).

Mean Household Income

The average income earned by households in a specific geographical area, calculated by summing all incomes and dividing by the number of households.