Modigliani and Miller argue that investors prefer dividends to c

Modigliani and Miller argue that investors prefer dividends to c


Asked by 2 years ago
403.4k points
  1. Which of the following statements about dividend policies is CORRECT?

a. Modigliani and Miller argue that investors prefer dividends to capital gains because dividends are more certain than capital gains. They call this the ?bird-in-the hand? effect.

b. One reason that companies tend to avoid stock repurchases is that dividend payments are taxed at a lower rate than gains on stock repurchases.

c. One advantage of dividend reinvestment plans is that they allow shareholders to avoid paying taxes on the dividends that they choose to reinvest.

d. One key advantage of a residual dividend policy is that it enables a company to follow a stable dividend policy.

e. The clientele effect suggests that companies should follow a stable dividend policy.

 

Modigliani and
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2 Answers

Answered by 2 years ago
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Oh Snap! This Answer is Locked

 Modigliani and Miller argue that investors prefer dividends to c

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Excerpt from file: 1. Which of the following statements about dividend policies is CORRECT? a. Modigliani and Miller argue that investors prefer dividends to capital gains because dividends are more certain than capital gains. They call this the bird-in-the hand effect. b. One reason that companies tend to avoid

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J
Answered by 8 months ago
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Oh Snap! This Answer is Locked

 Modigliani and Miller argue that investors prefer dividends to c

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Excerpt from file: Week Three Problem Set Learning Team B: Members University of Phoenix ACC/455 Corporate Taxation I November 21st, 2011 C:3-3 Discussion Question Case Scenario on Tax Elections C: 3-3 Discussion Question Case Scenario on Tax Elections Elections Tax Year Accounting Methods Calendar Year Accrual

Filename: ACC 455 Week 3 Learning Team Assignment Week Three Problem Set.ppt

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Asked: 2 years ago

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