Which of the following must be true for the dividend irrelevance theory to apply?
A) Transaction costs must be small.
B) Floatation costs must be small.
C) Ordinary income and capital gains must be taxed at nearly the same rate.
D) Both a. and c. are correct.
E) All of the above are correct.
Correct Answer:
Verified
Q2: Approximately what percent of earnings are paid
Q3: Which group of investors would most likely
Q4: Investor aversion to the payment of dividends
Q5: Firms with the _ growth tend to
Q6: Which of the following theories depends on
Q8: Conflicting arguments continue as to the impact
Q9: The clientele effect suggests that:
A)Some investors count
Q10: The clientele argument in dividend theory implies
Q11: According to the _ dividend policy a
Q12: Investor reaction to a decrease in dividends
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