According to the Clientele Effect,firms Can Only Boost Their Stock

question 43

Multiple Choice

According to the clientele effect,firms can only boost their stock price:

• A)by increasing the dividend payout ratio.
• B)by increasing their regular cash dividends.
• C)by setting their dividend to the level expected by the highest-dividend-receiving satisfied clientele group.
• D)by commencing dividend payments if they are a non-dividend-paying firm.
• E)if an unsatisfied clientele group exists.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Avoidance

Attachment dimension suggesting a negative view of others.

Dismissing Attachment

Attachment style with low anxiety but high avoidance.

Low Anxiety

A state of being characterized by minimal stress, worry, or nervousness.