An Investor Will Prefer a Low Dividend If

question 32

Multiple Choice

An investor will prefer a low dividend if:
I.the firm cannot reinvest the funds in projects where the yields exceed those that a shareholder could get elsewhere.
II.the investor needs a high level of current income.
III.the investor faces high personal taxes.

• A)I only
• B)III only
• C)I and II
• D)II and III

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Definitions:

Participative Decision Making

A process in which individuals who are affected by decisions influence the making of those decisions.

Data-based Decisions

Making decisions based on the analysis and interpretation of data, rather than intuition or personal experience alone.

Participative Decision Making

A decision-making process where all members of the group are involved to reach a consensus or agreement.

Act Autonomously

The capacity or action of making one's own decisions independently, often associated with self-direction and personal responsibility.