Which of the following is not an example of market imperfections that make dividend policy relevant?
A)institutional restrictions on stock holdings
B)differences in dividend-payout ratios
C)transaction costs such as brokerage fees
D)differences among investors in marginal tax rates

Question

Quizplus · Accepted Answer

Differences in dividend-payout ratios are not an example of market imperfections. Market imperfections that make dividend policy relevant include institutional restrictions, transaction costs, and tax differences, but not the internal dividend policies of companies themselves.

Which of the Following Is Not an Example of Market