Shareholder wealth considerations in the payment of dividends include all of the following EXCEPT
A) the tax status of the firm's owners.
B) the criminal status of the firm's owners.
C) the investment opportunities of the firm's owners.
D) the potential dilution of ownership on behalf of the firm's owners.

Question

Quizplus · Accepted Answer

The criminal status of the firm's owners is not a consideration when it comes to payment of dividends. The other options are valid considerations - tax status affects the after-tax return for shareholders, investment opportunities may affect the need for the firm to retain earnings, and potential dilution of ownership impacts the value of existing shares.

Shareholder Wealth Considerations in the Payment of Dividends Include All