Multiple Choice
Which of the following should NOT influence a firm's dividend policy decision?
A) The firm's ability to accelerate or delay investment projects.
B) A strong preference by most shareholders for current cash income versus capital gains.
C) Constraints imposed by the firm's bond indenture.
D) The fact that much of the firm's equipment has been leased rather than bought and owned.
E) The fact that Congress is considering changes in the tax law regarding the taxation of dividends versus capital gains.
Correct Answer:
Verified
Correct Answer:
Verified
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