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help bold answers 2. Other dividend policy issues Despite the theoretical assertions of proponents of the dividend irrelevance theory, many investors do care about dividends.
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2. Other dividend policy issues Despite the theoretical assertions of proponents of the dividend irrelevance theory, many investors do care about dividends. The table lists some factors that might affect an investor's preference for dividends. Indicate whether each factor is likely to make an investor prefer to receive more or fewer dividends. Dernham Burnham Inc, is a typical company that is very concerned with meeting investors' expectations and keeping ifvestors happy. Its earnings tend to fluctuate from year to year because of the nature of the business the company is in. Which of these statements most likely describes Dernham Burnham Inc.'s dividend policy? Dernham Burnham Inc. will pay a stable, predictable dividend because it will fower the firm's r, and increase the value of the firm. Dernham Burnham Inc. will use a residual dividend policy because it will increase the firm's F, and increase the value of the firm Step by Step Solution
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