Which of Following Is a Reason for a Low-Dividend-Payout Policy

question 45

Multiple Choice

Which of following is a reason for a low-dividend-payout policy?

• A)Low-dividend-payout clientele are willing to pay a higher price per share than high-dividend payout clientele.
• B)Avoidance of transaction costs for selling shares
• C)Convenient and direct deposit of cash dividend
• D)Less need for additional costly outside funding

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Definitions:

Acute Tubular Necrosis

A renal disorder involving damage to the tubule cells of the kidneys, which can lead to acute kidney failure.

Acute Tubulointerstitial Nephritis

A sudden kidney disorder characterized by inflammation of the tubules and surrounding structures, often caused by an allergic reaction to medication.

Acute Renal Failure

A sudden loss of kidney function, characterized by a decline in the kidneys' ability to filter waste products from the blood.

Medullary Necrosis

A condition involving the death of cells within the medulla, an inner region of an organ such as the kidneys or adrenal glands.