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Question 21 (2 points) Which of the following statements best describe the theories of investors' preferences for dividends? Based on the signaling hypothesis, a firm
Question 21 (2 points) Which of the following statements best describe the theories of investors' preferences for dividends? Based on the signaling hypothesis, a firm should always fix its dividend payout ratio to please investors. OMM argue that investors prefer dividends to capital gains. The clientele effect suggests that companies should adopt a constant-payout- ratio dividend policy to attract a certain group of investors. The bird-in-the-hand theory suggests that a company can increase its value by reducing its dividend payout ratio. None of the other statements is correct
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