We talked about how a firm might attract a different clientele by switching dividend payout policies: Might

Question:

We talked about how a firm might attract a different clientele by switching payout policies: Might a particular clientele change its preference for dividends versus capital gains through no action of the firm? Explain.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...