A disadvantage of the dividend residual model could be that the distribution of dividends is variable, which could send
Posted: Thu Apr 28, 2022 1:48 pm
A disadvantage of the dividend residual model could be that the
distribution of dividends is variable, which could send the wrong
signal to the investment market if the amount of money distributed
in that year is less than the amount distributed the previous year,
even if it is a proportion higher in relation to the net income
obtained that year.
Select one:
a.
TRUE
b.
False
According to the different theories that explain the
decision-making basis of the Dividend Policy, the Bird in the Hand
Theory is aimed at:
Select one:
a.
risk-averse investors who prefer to have their income secured now
through dividend payments rather than wait for future income
through capital gains.
b.
risk-neutral investors, since they have no preference as to how
they receive the income on their investments.
c.
risk-loving investors (risk lovers or risk seekers) who prefer
their income in the future.
d.
high net worth investors facing high personal tax rates.
distribution of dividends is variable, which could send the wrong
signal to the investment market if the amount of money distributed
in that year is less than the amount distributed the previous year,
even if it is a proportion higher in relation to the net income
obtained that year.
Select one:
a.
TRUE
b.
False
According to the different theories that explain the
decision-making basis of the Dividend Policy, the Bird in the Hand
Theory is aimed at:
Select one:
a.
risk-averse investors who prefer to have their income secured now
through dividend payments rather than wait for future income
through capital gains.
b.
risk-neutral investors, since they have no preference as to how
they receive the income on their investments.
c.
risk-loving investors (risk lovers or risk seekers) who prefer
their income in the future.
d.
high net worth investors facing high personal tax rates.