According to the Dividend Irrelevancy Theorem, Management Can Set the Amount

question 23

Multiple Choice

According to the dividend irrelevancy theorem, management can set the amount of current dividends at any level

• A) without making the current stockholders either better or worse off.
• B) provided they obtain permission from the stockholders.
• C) as long as the amount is approved by the SEC.
• D) but may not borrow funds to add to the amount.

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