Which one of the following statements is correct?
A)Dividends are irrelevant.
B)Flotation costs are a good reason to support a high-dividend payout.
C)Current tax laws favor high current dividends for individual investors.
D)Dividend policy is the time pattern of dividend payout.
E)Corporate investors tend to prefer low-dividend payouts on securities they own.

Question

Quizplus · Accepted Answer

Dividend policy refers to the strategy a company uses to decide how much it will pay out to shareholders in dividends, which involves the timing and pattern of these payouts.

Which One of the Following Statements Is Correct