The Dividend Market Is in Equilibrium When

question 78

Multiple Choice

The dividend market is in equilibrium when:

• A)all firms adopt a low dividend policy.
• B)half of the firms adopt a low dividend policy and half adopt a high dividend policy.
• C)all clienteles are satisfied.
• D)dividends remain constant and no special dividends are declared.
• E)the total amount of the annual dividends is equal to the net income for the year.

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Definitions:

Strict Liability

A legal principle where responsibility for damages is assigned without the need to prove negligence or fault.

Duty of Care

A legal obligation imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could harm others.

Vicarious Liability

A legal principle where one party is held liable for the actions of another party, typically in employer-employee relationships.

Duty of Care

Refers to the legal obligation to adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.