Which of the Following Should Not Influence a Firm's Dividend

question 27

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:

Plasma Membrane Components

Constituents of the cell's outer layer, including lipids, proteins, and carbohydrates, regulating entry and exit of substances.

Cell Wall Components

Molecules that make up the cell wall, providing structure and protection to cells in plants, fungi, and some bacteria; main components include cellulose in plants.

Viral Reassortment

Multiple strains of virus infect a host simultaneously and swap genes.

Horizontal Gene Transfer

Transfer of genetic material between existing individuals.