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.

---

Definitions:

Relative Frequency Approach

A method for estimating probabilities by dividing the number of observed occurrences of an event by the total number of observations.

Wireless Phone

A communication device that does not require a physical connection to a telephone network, often referring to mobile or cordless phones.

Next Customer

The following or upcoming client to be served or attended to in a service setting.

Probability

A measure of the likelihood that an event will occur.