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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