Which One of These Statements Is True

question 24

Multiple Choice

Which one of these statements is true?

• A)Dividends are irrelevant.
• B)Shareholders are unable to personally adjust the dividend policy set by a firm.
• C)According to Miller and Modigliani,a firm should alter its investment policy whenever a change is made in its dividend policy.
• D)Dividend policy is relevant.
• E)Firms should never give up a positive NPV project to increase a dividend.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all interest payments and principal repayment.

Intrinsic Value

The actual, fundamental value of an asset, stock, or company calculated through analysis independent of market value.

Annual

The term annual refers to something that occurs once every year, used in various contexts such as annual reports, annual meetings, or annual events.