Dividend policy would be irrelevant if which of the following was true?
A) I
B) III
C) II an III
D) I, II, and III
I.Capital gains and dividends were taxed equally
II.Markets were strong-form efficient
III.Transaction costs were negligible

Question

Quizplus · Accepted Answer

Dividend policy would be irrelevant if capital gains and dividends were taxed equally, markets were strong-form efficient, and transaction costs were negligible, as these conditions would mean that investors are indifferent between receiving dividends or capital gains.

Dividend Policy Would Be Irrelevant If Which of the Following