Which of the Following Does NOT Normally Influence a Firm's

question 37

Multiple Choice

Which of the following does NOT normally influence a firm's dividend policy decision?

• A) The firm's ability to accelerate or delay investment projects without adverse consequences.
• B) A strong preference by most of its shareholders for current cash income versus potential future capital gains.
• C) Constraints imposed by the firm's bond indenture.
• D) The fact that much of the firm's equipment is leased rather than bought and owned.
• E) The fact that Congress is considering changes in the tax law regarding the taxation of dividends versus capital gains.

---

Definitions:

Standard Error

A statistical measure of the variability or precision of a sample mean, as an estimate of the population mean.

Population Average

The mean value of a set of characteristics or measurements for the entire population.

Population Standard Deviation

A measure of the dispersion or spread of a set of data points in a population, showing how much variation exists from the average.

Square Root

A mathematical function that produces the original number when multiplied by itself.