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Which Circumstance Should NOT Influence a Firm's Dividend Policy Decision

Question 21

Multiple Choice

Which circumstance should NOT influence a firm's dividend policy decision?


A) the firm's ability to accelerate or delay investment projects
B) a strong preference by most shareholders for current cash income versus capital gains
C) Constraints imposed by the firm's bond indenture
D) the fact that much of the firm's equipment has been leased, rather than bought and owned

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