How does the dividend decision affect a firm's equity holders?
A)It may mean equity holders don't receive dividends every year.
B)It could alter the capital gains equity holders can expect.
C)It affects the form in which returns generated by the firm are passed on to equity holders.
D)All of the above

Question

Quizplus · Accepted Answer

All of the choices (A, B, and C) are correct. The dividend decision affects a firm's equity holders in various ways, including the possibility of not receiving dividends every year (A), the alteration of capital gains (B), and the form in which returns generated by the firm are passed on to equity holders (C).

How Does the Dividend Decision Affect a Firm's Equity Holders