Which of the following statements is correct?
A) Shareholders motivated by the prospects of higher future share price growth tend to invest in companies with low dividend cover
B) Shareholders motivated by the prospects of higher future share price growth tend to invest in companies with a low P/E ratio
C) Shareholders who buy shares for a regular income tend to invest in companies with low dividend cover
D) Shareholders who buy shares for a regular income tend to invest in companies with high dividend cover

Question

Quizplus · Accepted Answer

Shareholders seeking regular income prefer companies with low dividend cover, indicating a higher proportion of earnings paid as dividends.

Which of the Following Statements Is Correct