A Justification for No Dividend Payments That Would Be Pleasing

question 52

Multiple Choice

A justification for no dividend payments that would be pleasing to shareholders could be

• A) insufficient cash available for dividend payments.
• B) positive NPV investment projects that require the firm to retain cash for investment purposes.
• C) an investor clientele that prefers current liquidity.
• D) cash will be used for a stock dividend.

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Definitions:

Elizabeth Loftus

A cognitive psychologist renowned for her work on the malleability of human memory and the misinformation effect.

Lost At The Mall

A controversial psychological experiment indicating how easy it is to implant false memories, specifically a fabricated story about being lost in a mall as a child.

Depersonalization/Derealization Disorder

A mental disorder in which the individual experiences persistent or recurrent feelings of detachment from one's self (depersonalization) or the surrounding world (derealization).

Dissociative Fugue

A rare disorder characterized by sudden, unexpected travel away from home or one's place of work, with an inability to recall one's past and confusion about personal identity, sometimes adopting a new identity.