Which of the Following Is NOT a Stated Reason for Following

question 48

Multiple Choice

Which of the following is NOT a stated reason for following a sticky dividend policy?

• A)Individuals who use the cash flow from dividends for current income do not like having their cash flow cut unexpectedly.
• B)The market considers dividend payments a signal of the firm's health.A dividend cut may be considered bad news.
• C)If managers pay dividends,they are constrained from paying dividends so large that cash dividends would come from legal capital.
• D)All of the above are stated reasons for sticky dividend policy.

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Definitions:

GABA

Gamma-Aminobutyric Acid, a neurotransmitter in the brain that inhibits nerve transmission, helping to regulate nerve excitability and calm the nervous system.

Dopamine

A neurotransmitter in the brain associated with pleasure, reward, and motivation among other functions.

Sociological Research

The systematic investigation of social phenomena through empirical or theoretical methods aimed at understanding or explaining social behaviors and society.

Cause And Effect

A relationship in which one event (the cause) makes another event happen (the effect), often studied to understand the dynamics of phenomena.