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

question 32

Multiple Choice

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

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

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Operating Hours

The hours during which a business is open to customers, typically specified for workplaces, retail stores, or service providers.

Machine Purchase

The acquisition of industrial or office machinery, usually considered a long-term investment in assets.

Extraordinary Repair

Major repairs extending the useful life of an asset far beyond the normal maintenance.