Which of the following would not have an influence on the optimal distribution policy?
A) The possibility of accelerating or delaying investment projects.
B) A strong shareholders' preference for current income versus capital gains.
C) Bond indenture constraints.
D) The costs associated with selling new common stock.
E) All of the statements above can have an effect on dividend policy.

Question

Quizplus · Accepted Answer

All of the statements above can have an effect on dividend policy. The optimal distribution policy depends on various factors including investment opportunities, shareholder preferences, bond indenture constraints, and costs associated with selling new common stock. Therefore, all the given options can have an influence on the optimal distribution policy.

Which of the Following Would Not Have an Influence on the Optimal