Which of the Following Should Not Influence a Firm's Dividend

question 36

Multiple Choice

Which of the following should not influence a firm's dividend policy decision?

• A) a strong preference by most shareholders for current cash income versus capital gains.
• B) constraints imposed by the firm's bond indenture.
• C) the fact that much of the firm's equipment has been leased rather than bought and owned.
• D) the fact that congress is considering changes in the tax law regarding the taxation of dividends versus capital gains.
• E) the firm's ability to accelerate or delay investment projects.

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Definitions:

Exponential Smoothing Model

A time series forecasting method for univariate data that applies exponentially decreasing weights over past observations.

Forecast

A prediction or estimate of future events, especially regarding weather or economic trends.

Sales Details

Information and data related to the sales performance of products or services, including quantities sold, revenue generated, and trends over time.

Value of K

A specific numerical quantity or parameter that might have different meanings depending on the context in which it's used.