Which Statement About Dividend Policies Is Correct

question 1

Multiple Choice

Which statement about dividend policies is correct?

• A)Stock splits, stock dividends, and reverse splits are all designed to make the firm's shares more appealing to the average investor.
• B)Dividend reinvestment plans are designed to aid in the distribution of stock dividends.
• C)The key advantage of a residual dividend policy is that it enables a company to follow a stable dividend policy.
• D)The main goal of the share repurchases is solely to avoid taxes for investors.

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