Which of the Following Does NOT Normally Influence a Firm's

question 37

Multiple Choice

Which of the following does NOT normally influence a firm's dividend policy decision?

• A) The firm's ability to accelerate or delay investment projects without adverse consequences.
• B) A strong preference by most of its shareholders for current cash income versus potential future capital gains.
• C) Constraints imposed by the firm's bond indenture.
• D) The fact that much of the firm's equipment is leased rather than bought and owned.
• E) The fact that Congress is considering changes in the tax law regarding the taxation of dividends versus capital gains.

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Definitions:

Job Comparison Methods

Techniques used to evaluate and compare the responsibilities, requirements, and value of jobs within an organization to ensure fair and equitable compensation.

Relative Worth

The value or importance of a job, task, or item compared to others, often assessed in the context of job evaluations or market value.

Job Evaluation

A systematic process for assessing the relative value of jobs within an organization to establish a fair and equitable pay structure.

Job Description

A formal account of an employee's responsibilities, duties, and the scope of a job, often used in the recruitment and evaluation process.