Which of the following is a characteristic of a firm's optimal dividend policy? O It maximizes the firm's earnings per share. O It maximizes the firm's return on equity. It maximizes the firm's stock price. O It maximizes the firm's total assets. Which of the following statements is true? O Taxes on dividend income are paid in the year that they are received. O Taxes on dividend income s are paid when the stock is sold. As a result, the U.S. tax code encourages many individual investors to prefer to receive capital gains Another firm, called Cheatum Power & Water, an established public utility company, has been paying dividends for the past 20 years. This year Cheatum also announced that it will increase its dividends by 10%, which class of investors is more likely to be pleased by Cheatum's dividend announcement? O Investors with low tax rates who depend on current dividend income for living expenses O Investors with high tax rates who dont depend on current dividend income for living expenses A firm's dividend policy determines its current clientele of investors. Copyright NoticesTerms of UsePrivacy Notice Security Notice Accessibility FS F1 F0