Multiple Choice
A company pays high dividends and soon afterwards issues new shares to raise cash for investment. What two possible reasons are there for this approach?
A) It enables owners to regain control over the use of their money.
B) It increases the power of agents rather than owners..
C) Policy is being driven by the signaling effect of dividends.
D) It ensures that future dividend levels can be maintained.
Correct Answer:
Verified
Correct Answer:
Verified
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