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Which of the Following Is True of Dividend Yields

Question 17

Multiple Choice

Which of the following is true of dividend yields?


A) Dividend yields have no influence on the price of the equity.
B) Equities with high dividend yields are fundamentally same as the equities with low dividend yields in terms of their risk profiles.
C) Equities with high dividend yields have higher returns than equities with low dividend yields.
D) An increase in dividends will always increase the equity?s required rate of return.

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