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:

Deviant Behavior

Actions or behaviors that violate societal norms and expectations.

General Public

The broad group of people in society who are not specialized or distinct in any specific area but represent the average citizens.

Sociologists

Social scientists who study human societies, their interactions, and the processes that preserve and change them.

Deviance Definition

Deviance definition entails behaviors, actions, or conditions that violate social norms or expectations, varying widely across cultures and settings.