Multiple Choice
High dividends may increase stock values due to all of the following reasons except:
A) dividends are more certain than capital gains.
B) higher dividends are used to signal higher expected future earnings.
C) dividends are used as a tool to minimize agency costs.
D) higher dividends allow companies to increase their proportion of external equity financing.
Correct Answer:
Verified
Correct Answer:
Verified
Q30: When considering taxes,most investors prefer capital gains
Q50: Coppell Timber Company had total earnings last
Q53: Cryptic Corporation has 10 million shares of
Q59: All of the following conclusions on the
Q63: The residual theory of dividends connects a
Q64: According to the bird-in-the-hand dividend theory,investors value
Q83: The residual dividend theory implies that internally
Q108: We typically expect to find rapidly growing
Q140: Corporations distribute cash back to their owners
Q147: A firm's dividend policy provides information pertaining