Which One of the Following Statements Is Correct

question 24

Multiple Choice

Which one of the following statements is correct?

• A)Firms prefer to cut dividend payments rather than borrow money to fund a short-term cash need.
• B)Share repurchases tend to increase agency costs.
• C)Maintaining a steady dividend is a key goal of most dividend-paying firms.
• D)Tax rates are the key factor in determining a firm's dividend policy.
• E)Stock prices tend to ignore expected changes in dividend payments.

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Definitions:

Inverted Pyramid

A writing structure common in news reporting, presenting the most important information first, followed by details in decreasing order of importance.

Visual Parallelism

The technique of using visually similar elements within a design or composition to create a sense of unity and balance.

Visual Parallelism

involves the arrangement of text, images, and design elements in a way that allows them to relate visually to each other, enhancing overall coherence and aesthetic appeal.

Bar Chart

A graphical representation of data where individual bars represent the values of different categories or variables on a given axis.