Which of the Following Supports the "Bird-In-The-Hand" Dividend Theory

question 85

Multiple Choice

Which of the following supports the "bird-in-the-hand" dividend theory?

• A) Investors prefer dividends to capital gains because of the time value of money.
• B) Increasing a firm's dividends transfers risk and ownership from the current shareholders to new owners.
• C) Investment decisions are not influenced by dividend policy.
• D) Capital mix decisions are not influenced by dividend policy.

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Definitions:

Pollution Reduction

The process or practice of diminishing the amount of pollutants released into the environment, thereby reducing harm to ecosystems and human health.

Netherlands' Green Plan

A strategic initiative by the Netherlands focusing on sustainable practices and policies to enhance environmental conservation and reduce carbon footprints.

Precise Recommendations

Detailed and specific suggestions or guidelines intended to achieve an objective or solve a problem.

Businesses

Organizations engaged in the provision of goods or services with the primary aim of making a profit.