Low Dividends May Increase Stock Value According to the

question 37

Multiple Choice

Low dividends may increase stock value according to the

• A) bird-in-the-hand theory.
• B) information effect.
• C) impact of agency costs.
• D) tax bias in favor of capital gains.

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Definitions:

Organizational Culture

The collective values, beliefs, attitudes, and behaviors that characterize an organization, shaping its social and psychological environment.

Shared Assumptions

The common beliefs or understandings that members of a group or organization hold to be true, often unconsciously, which shape their behaviors and attitudes.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Organizational Ambidexterity

The ability of an organization to balance and manage both exploitative activities (improving existing operations) and exploratory activities (innovation and new opportunities) efficiently.