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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