Which One of the Following Statements Related to Dividend Policy

question 67

Multiple Choice

Which one of the following statements related to dividend policy is correct?

• A)The primary question related to dividend policy is whether or not a firm should ever pay a dividend.
• B)Both dividends and dividend policy are irrelevant.
• C)Dividend policy focuses on the timing of dividend payments.
• D)Homemade dividends increase the importance of a firm's dividend policy decisions.
• E)Whether or not a firm ever pays a dividend is irrelevant to equity valuation.

---

Definitions:

Legal Relationship

A connection between entities or individuals that is recognized and enforceable by law.

Radio

A radio is a technology that uses radio waves to transmit information, such as sound, by systematically modulating properties of electromagnetic energy waves transmitted through space.

Contract Formation

The process of creating a legally binding agreement, typically involving offer, acceptance, consideration, and mutual consent among parties.

Self-Service Merchandising

A retail strategy where customers select products by themselves without direct assistance from staff, typically in grocery or department stores.