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The Dividend Market Is in Equilibrium When

Question 27

Multiple Choice

The dividend market is in equilibrium when:


A) all firms adopt a low dividend policy.
B) half of the firms adopt a low dividend policy and half adopt a high dividend policy.
C) all clienteles are satisfied.
D) dividends remain constant and no special dividends are declared.
E) the total amount of the annual dividends is equal to the net income for the year.

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