The Result That Dividend Policy Is Irrelevant Can Be Critiqued

question 28

Multiple Choice

The result that dividend policy is irrelevant can be critiqued if we consider

• A) differential tax rates between dividends and capital gains.
• B) that certain shareholders would rather receive dividends instead of capital gains.
• C) that shareholders do not have the ability to produce their own dividends.
• D) all of the above.

---

Definitions:

Expense Slip

A slip of paper on which any expense, or cost, that is incurred on behalf of a client, such as the payment of court fees or long-distance telephone charges, is recorded.

Expense Or Cost

The economic value or outlay associated with a product, service, or activity, often considered in terms of its impact on an organization's finances.

Fees Charged

The amount of money requested or required in exchange for services provided.

Representation Results

The outcomes or achievements attained by legal representation in litigation or negotiations on behalf of clients.