Dividends are irrelevant in perfect capital markets because
A) no tax consequences exist for dividend or capital gains income.
B) no transactions cost consequences exist for trading (buying or selling) shares.
C) retaining earnings or paying dividends have no effect on the firm's investment decisions (accepting positive-NPV projects) .
D) all of the above.
Correct Answer:
Verified
Q1: Which of the following would imply a
Q2: In order to receive a dividend payment,an
Q3: Choc-lattes Corp.earned $5.00 per share in 2006,and
Q4: In perfect capital markets,
A) dividends are irrelevant
Q6: Place the following dates related to dividend
Q7: A company that seeks to pay a
Q8: Stock prices usually drop by an amount
Q9: A company that seeks to pay a
Q10: Empirical evidence suggests managers
A) closely follow a
Q11: Choc-lattes Corp.earned $5.00 per share in 2006,and
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