Which of the Following Is the Most Likely Reason for a Corporation

question 2

Multiple Choice

Which of the following is the most likely reason for a corporation to cut its dividend?

• A) To keep the firm's price within its optimal range.
• B) Because the company believes that existing dividend levels are no longer sustainable.
• C) To make the firm more attractive to growth oriented investors.
• D) To shelter the shareholders from double taxation.

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Definitions:

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a manual published by the American Psychiatric Association that classifies mental disorders.

Medical Model Bias

The tendency to view mental health issues and behaviors solely through the lens of biological factors or illnesses, often overlooking social, psychological, and environmental influences.

Observable Behaviors

Behaviors or responses from a person that are observable and quantifiable.

Psychologically Disordered

Referring to a condition characterized by abnormalities in thought, emotion, or behavior, leading to distress or impaired functioning.