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NEW QUESTION: 1
Which of the following statements best describes the theories of investors' preferences for dividends?
A. The tax preference theory suggests that a company can increase its stock price by increasing its dividend payout ratio.
B. Modigliani and Miller argue that investors prefer dividends to capital gains.
C. The clientele effect suggests that companies should follow a stable dividend policy.
D. One key advantage of a residual dividend policy is that it enables a company to follow a stable dividend policy.
E. The bird-in-hand theory suggests that a company can reduce its cost of equity capital by reducing its dividend payout ratio.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Different groups, or clientele, of stockholders prefer different dividend payout policies. Stockholders in a low or tax-free tax bracket generally prefer cash income, so a payout would be their preference. On the other hand, stockholders in a high tax bracket might prefer reinvestment of earnings because they have little need for current investment income. To the extent that stockholders can switch firms, a firm can change from one dividend payout policy to another to let stockholder who do not like the new policy sell to other investors who do. Yet this would be costly because of brokerage costs, the capital gains taxes that would have to be paid by the selling stockholders, and the chance that there will be a net loss of investors who like the firm's new dividend policy. Management should therefore, probably not change its policy.
Several studies show that there is a clientele effect, which is the tendency of a firm to attract a set of investors who like its dividend policy. The existence of the clientele effect does not necessarily imply that one dividend policy is better than another.
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When assessing the fluid and electrolyte balance in an infant, which of the following would be important to
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B. Infant can concentrate urine at an adult level
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Answer: D
Explanation:
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DRAG DROP
Drag and drop each IPv6 neighbor discovery message type on the left to the corresponding description on the right.
Answer:
Explanation:
NEW QUESTION: 4
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(MEP) is enabled?
A. The Metric Exchange Protocol (MEP) will be marked as DOWN if the GSLB service has been DOWN for 10 seconds.
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C. The GSLB services will be marked as DOWN if the service has been DOWN for 10 seconds.
D. The GSLB services will be marked as DOWN, if the Metric Exchange Protocol (MEP) connection has been DOWN for 10 seconds.
Answer: D
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