Which of the following should NOT influence a firm's dividend policy decision?
A) The firm's ability to accelerate or delay investment projects.
B) A strong preference by most shareholders for current cash income versus capital gains.
C) Constraints imposed by the firm's bond indenture.
D) The fact that much of the firm's equipment has been 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.
Correct Answer:
Verified
Q1: In the real world, dividends
A) are usually
Q2: Which of the following would be most
Q3: If investors prefer firms that retain most
Q4: If a firm adheres strictly to the
Q6: Trenton Publishing follows a strict residual dividend
Q8: The announcement of an increase in the
Q14: If the shape of the curve depicting
Q18: MM's dividend irrelevance theory says that while
Q49: A reverse split reduces the number of
Q53: Even if a stock split has no
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents