The Result That Dividend Policy Is Irrelevant Can Be Critiqued

question 72

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.

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Definitions:

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at preventing anticompetitive practices in their incipiency and protecting trade and commerce against unlawful restraint and monopoly.

Antitrust Violations

Activities that reduce or prevent competition, deemed illegal under antitrust laws designed to promote fair competition.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 to preserve free and unfettered competition as the rule of trade.

American Tobacco

A historical company involved in the manufacturing and selling of tobacco products, once a major player in the tobacco industry.