Which of the following does NOT normally influence a firm's dividend policy decision?
A) The firm's ability to accelerate or delay investment projects without adverse consequences.
B) A strong preference by most of its shareholders for current cash income versus potential future capital gains.
C) Constraints imposed by the firm's bond indenture.
D) The fact that much of the firm's equipment is leased rather than bought and owned.
E) The fact that Congress is considering changes in the tax law regarding the taxation of dividends versus capital gains.

Question

Quizplus · Accepted Answer

The fact that much of the firm's equipment is leased rather than bought and owned does not normally influence a firm's dividend policy decision.

Which of the Following Does NOT Normally Influence a Firm's