Which of the Following Typically Would NOT Affect the Dividend

question 108

Multiple Choice

Which of the following typically would NOT affect the dividend policy of the firm?

• A)Today's dividend policy is affected by future dividend expectations among investors.
• B)Managers are afraid to decrease their voting control of the company by issuing share dividends.
• C)The failure of so many high-tech and dot.com companies showed that dividends are important to long-term investors.
• D)The current and future cash flow expectations of the company affect dividend policy.

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Definitions:

Regulated Fares

Fares for transportation or services that are controlled or set by a governing body to ensure fairness and accessibility.

Elastic Demand

A situation where the quantity demanded of a good or service is sensitive to changes in its price.

Total Revenue

The total income earned by a company from its sales of goods or services before any costs or expenses are subtracted.

Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a high response to price changes.