Dividend Policy Would Be Irrelevant If Which of the Following

question 19

Multiple Choice

Dividend policy would be irrelevant if which of the following was true?

• A) I
• B) III
• C) II an III
• D) I, II, and III
• I.Capital gains and dividends were taxed equally
• II.Markets were strong-form efficient
• III.Transaction costs were negligible

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Definitions:

Outside Director

A member of a company's board of directors who is not part of the company's executive staff and is theoretically impartial.

Business Contacts

Individuals or organizations that are involved in business dealings or can provide valuable connections and opportunities in the business world.

Affiliated Director

A board member who has a close relationship with the company or its principals, which could affect impartiality.

Day-to-Day

Describes activities or tasks that occur on a regular, daily basis, often relating to routine or ordinary operations.