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Which of the Following Statements Is Correct

Question 8

Multiple Choice

Which of the following statements is correct?


A) The value of a company's share will decrease unless a dividend is paid every year
B) The value of a company's share will increase if a regular dividend is paid
C) If a company can earn a better rate of return, by investing retained profits, than shareholders can earn themselves, then dividends should be paid
D) If a company can earn a better rate of return, by investing retained profits, than shareholders can earn themselves, then there is a case for dividends not to be paid

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