Which three of the following statements are correct?

Question

Quizplus · Accepted Answer

A) is incorrect because in a world with no external finance available, dividend policy should follow a residual approach.
B) is correct because the resolution of uncertainty argument suggests that investors prefer near-term dividends that are less risky.
C) is correct because shareholders may be attracted to firms that follow dividend policies consistent with their own investment objectives.
D) is correct because a scrip dividend allows shareholders to receive additional shares instead of cash.

Which Three of the Following Statements Are Correct