Transaction Costs Can Have an Impact on a Firm's Dividend

question 10

Multiple Choice

Transaction costs can have an impact on a firm's dividend policy:

• A)if they are too high then this would reduce the firm's ability to raise new capital
• B)since they would impact the frequency of dividend payments
• C)they would increase the costs for sending out dividend payments
• D)if they are low then this would increase the size and frequency of dividend payments

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