Which of the following statements lends support to dividend irrelevance rather than to dividend relevance? (a) Investors

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Which of the following statements lends support to dividend irrelevance rather than to dividend relevance?

(a) Investors prefer the certainty of dividends to the uncertainty of capital gains.

(b) Companies build up a clientele of shareholders due to their dividend policy.

(d) Taxes distort the desirability of dividends relative to capital gains.

(e) Shareholders can make their own dividends by selling some of their shares.

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Corporate Finance Principles And Practice

ISBN: 9781292450940

9th Edition

Authors: Denzil Watson, Antony Head

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Question Posted: Nov 02, 2023 07:20 AM

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Which of the following statements lends support to dividend irrelevance rather than to dividend relevance? (a) Investors

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The correct answer is e The argument that shareholders could manufacture ...View the full answer

Corporate Finance Principles And Practice

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