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

question 38

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:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Control of Attitude

The ability to regulate one's own emotional response or outlook, particularly in challenging or uncertain situations.

Positive Attitudes

Describes a mindset that focuses on the good aspects of situations, promotes optimism, and contributes to well-being.

Value Diversity

Appreciating and respecting the variety of differences in individuals, including culture, race, religion, gender, and sexual orientation.