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

question 91

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:

Organization Chart

A diagram that shows the structure of an organization, including the relationships and relative ranks of its parts and positions/jobs.

Organizational Strategy

A plan of action designed to achieve a long-term or overall aim within an organization.

Technological Strategies

Plans and actions implemented to leverage technology for competitive advantage and operational improvement.

Competitive Advantage

A condition that allows a company or country to produce goods or services at a lower price or in a more desirable fashion for customers than its competitors.