All of the Following Factors Support the Proposition That Dividend

question 30

Multiple Choice

All of the following factors support the proposition that dividend policy matters except:

• A) investors desire to minimize and defer taxes, and capital gains get preferential tax treatment over dividend income.
• B) perfect capital markets.
• C) information asymmetry exists between shareholders and managers.
• D) flotation costs significantly increase the cost of new common stock compared to retained earnings.

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Definitions:

Humanistic Approach

A psychological perspective emphasizing respect for the individual and a focus on each person's unique potential and importance of human values.

Support Groups

Structured gatherings that provide emotional, informational, or material support to individuals sharing a common experience or challenge.

Therapeutic Factors

Elements in psychological treatment that contribute to healing, including the establishment of trust, group cohesiveness, and the expression of emotions.

Group Treatment

A form of psychotherapy where a small group of individuals meet regularly to discuss and work through their issues with the guidance of a therapist.