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Which of the following does NOT normally influence a firm's dividend policy decision? Answer a. The firm's ability to accelerate or delay investment projects without
Which of the following does NOT normally influence a firm's dividend policy decision?
Answer
a. | The firm's ability to accelerate or delay investment projects without adverse consequences. | |
b. | The fact that much of the firm's equipment is leased rather than bought and owned. | |
c. | Constraints imposed by the firm's bond indenture. | |
d. | The fact that Congress is considering changes in the tax law regarding the taxation of dividends versus capital gains. | |
e. | A strong preference by most of its shareholders for current cash income versus potential future capital gains. |
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