Which Circumstance Should NOT Influence a Firm's Dividend Policy Decision

question 6

Multiple Choice

Which circumstance should NOT influence a firm's dividend policy decision?

• A) the firm's ability to accelerate or delay investment projects
• B) a strong preference by most shareholders for current cash income versus capital gains
• C) Constraints imposed by the firm's bond indenture
• D) the fact that much of the firm's equipment has been leased, rather than bought and owned

---

Definitions:

Presynaptic Terminal

The end part of an axon from which neurotransmitters are released into the synaptic cleft to communicate with a neighboring neuron.

Action Potentials

Short-lived changes in the electrical potential of a cell's membrane, leading to the transmission of nerve impulses.

Chemical Synapse

A chemical synapse is a type of synapse that utilizes chemical messengers, known as neurotransmitters, to transmit signals between neurons across a synaptic gap.

Presynaptic Terminal

The end point of a neuron where neurotransmitters are stored before being released into the synaptic cleft.