Those who believe investors choose a particular stock due to the firm's dividend policy would contend that firm should consider the effect when changing dividend policies.

Question

Quizplus · Accepted Answer

Clientele refers to the group of investors who prefer certain types of stocks based on the firm's dividend policy. If a firm changes its dividend policy, it may attract or repel certain types of investors, which can have an effect on the stock price. Thus, firms should consider the potential impact on their clientele when changing their dividend policies. The other choices (B, C, D, E) are not directly related to the effect on investors' stock choices due to dividend policy.

Those Who Believe Investors Choose a Particular Stock Due to the Firm's