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A 2004 Survey of Financial Executives Indicated That

Question 43

Multiple Choice

A 2004 survey of financial executives indicated that


A) CFOs would prefer to pay zero dividends if they could.
B) CFOs often reduce dividends if they have a large number of positive NPV projects in which to invest the money.
C) CFOs are concerned with minimizing their investors' personal taxes, which is why they prefer to distribute income through share repurchases rather than through dividends.
D) Both A and B are true statements.

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