Assume That Satisfied Clienteles Exist

question 83

Multiple Choice

Assume that satisfied clienteles exist.Given this assumption, which one of these statements is correct?

• A)A firm can increase its share price by increasing its dividend payout.
• B)Dividend policy is irrelevant as long as each clientele group remains satisfied.
• C)All firms will adopt a high-dividend-payout policy.
• D)All dividends become irrelevant.
• E)All firms should adopt a low-dividend-payout policy.

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Definitions:

Buys

The act of acquiring goods or services in exchange for money.

Product

Any good, service, or idea that can be offered to a market to satisfy a want or need.

Majority

Majority refers to more than half of a particular group or quantity, often used to describe the greater part of a population or collection.

Population

Refers to the total number of people living in a particular area or country at a specific time.