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.

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Definitions:

Angela Lee Duckworth

A psychologist known for her research on grit and self-control, emphasizing their importance in achieving success.

Grit

Persistent determination and resilience in pursuing long-term goals, despite obstacles or setbacks.

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A technique involving conscious, deliberate inhalation and exhalation to reduce stress, improve focus, and promote relaxation.