Which Statement About Dividend Policies Is Correct

question 39

Multiple Choice

Which statement about dividend policies is correct?

• A)Modigliani and Miller argue that investors prefer dividends to capital gains because dividends are more certain than capital gains. They call this the bird-in-the hand effect.
• B)One advantage of dividend reinvestment plans is that they allow shareholders to avoid paying taxes on the dividends that they choose to reinvest.
• C)The key advantage of a residual dividend policy is that it enables a company to follow a stable dividend policy.
• D)The clientele effect suggests that companies should follow a stable dividend policy.

Recognize the importance of client and therapist variables in the outcome of psychological treatments.

Understand the concept of prevention and treatment options for psychological disorders.

Grasp the importance and methods of cultural competence in psychotherapy.

Identify the components and therapeutic techniques used in the management of psychological disorders.

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Definitions:

Bid

An offer of a specific price for goods or services, especially in the context of auctions or competitive bidding processes.

Market Maker

An entity that buys and sells securities from their own inventory to maintain liquidity and facilitate trading in financial markets.

Widgets

A generic term often used to refer to any product or manufactured good.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity of goods or services demanded at the market equilibrium price.