Which of the Following Is True If Dividend Policy Is

question 75

Multiple Choice

Which of the following is true if dividend policy is irrelevant?

• A) Perfect capital markets exist.
• B) The clientele effect exists.
• C) The information effect exists.
• D) Tax deferral on capital gains exists.

---

Definitions:

Social Skills

Abilities used to interact and communicate effectively with others in a social context.

Initiative Versus Guilt

A stage in Erik Erikson's theory of psychosocial development where children aged approximately three to six years face the challenge of initiating activities or feeling guilty for their actions.

Psychological Development

The development of emotional, intellectual, and social capabilities and functioning across a person's lifespan.

Prosocial Behavior

Actions intended to benefit others, including helping, sharing, and showing compassion.