The Bird-In-The-Hand Argument Espousing the Importance of Dividends or Dividend

question 38

True/False

The bird-in-the-hand argument espousing the importance of dividends or dividend relevance suggests that investors view a current (certain) dividend as less risky than future (uncertain) dividends or capital gains; nevertheless, proponents of this theory argue that this will have no significant impact on share price.

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Definitions:

General

Relating to all members or elements in a group or category, without specifying or excluding any.

Grapevine

Informal and unofficial communication channels within an organization, where information is often shared among employees without sanction or control by management.

Controversial

Pertains to issues or subjects that provoke public disagreement or debate.

Organizationally Related

Pertaining to aspects or functions that are directly connected to the structure, culture, or operations of an organization.