Question
Shareholders may prefer dividends to reinvestment by the firm: because the firm can earn higher returns than the shareholder. because investors may prefer future cash
Shareholders may prefer dividends to reinvestment by the firm:
because the firm can earn higher returns than the shareholder.
because investors may prefer future cash to current cash.
because dividends payments are certainty every year.
because dividend payments have an information content.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Federal Taxation 2016 Comprehensive
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
29th Edition
134104374, 978-0134104379
