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

question 33

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:

Thoracic Volume

Refers to the volume of the thoracic cavity, which affects respiratory function and is influenced by breathing.

Alveolar Pressure

The pressure of air within the alveoli of the lungs, crucial for the process of breathing in and out.

External Intercostals

Muscles located between the ribs that aid in the process of inhalation by elevating the ribcage.

Rectus Abdominis

A paired muscle extending along the front of the abdomen that is important for posture and involved in flexing the spine.