If Transaction Costs Are Significant,then Which of the Following Might

question 4

Multiple Choice

If transaction costs are significant,then which of the following might be the effect on cash dividends and share repurchases?

• A) dividends might be more likely to be paid from the investors preference argument
• B) dividends might be less likely to be paid from the firm's perspective of raising capital
• C) dividend choices are always relevant
• D) none of the above

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Definitions:

Technology Forcing

Regulatory policies designed to promote the development of new technologies to meet desired standards.

Health Considerations

Factors related to physical, mental, or social well-being that influence decisions or actions.

Industries

Industries refer to the various sectors of an economy characterized by the production and manufacture of goods or services within a specific branch.

Technology Dependent

Refers to entities or individuals that heavily rely on technology for operations, functionalities, or daily living.