Higher Dividend-Payout Policies Have a __________ Impact on the Value

question 75

Multiple Choice

Higher dividend-payout policies have a __________ impact on the value of the call and a __________ impact on the value of the put compared to lower dividend-payout policies.

• A) negative; negative
• B) positive; positive
• C) positive; negative
• D) negative; positive
• E) zero; zero

---

Definitions:

Assets

Resources owned by a company that have economic value and can be used to meet its financial obligations.

Liabilities

Financial obligations or debts owed by a business or individual.

Natural Business Year

A fiscal year that ends when a business’s activities are at their lowest point in its annual cycle, typically determined by the nature of the business.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which doesn't necessarily coincide with the calendar year.