Shareholder needs or preferences that may influence the dividend decision include:

Question

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All of the given choices can influence the shareholder's decision regarding the dividend. Shareholders who need current income to support themselves may prefer a higher dividend payout, while those who do not need current income may prefer price appreciation through reinvestment. Additionally, some shareholders may prefer capital gains (profit from an increase in a stock's price) over ordinary income (dividends) because of tax implications.

Shareholder Needs or Preferences That May Influence the Dividend Decision