Dividend Payout Ratios in Russia tend to be higher than in the United States. This implies which of the following?
Investors in Russia are more likely to believe in the Bird-In-the-Hand Theory since they do not trust Russian Accounting. |
Investors in the US do not believe in any dividend theory. |
Russian Investors are more like to follow the tax preference theory since Russia has lower taxes than the United States. |
No dividend theory is implied from this information. |
Answer: The first option is correct.
Investors in Russia are more likely to believe in the
Bird-In-the-Hand Theory since they do not trust Russian
Accounting.
As per the Bird-in-the-hand theory the investors prefer to
immediate dividend in comparison to long term capital
appreciations.
Dividend Payout Ratios in Russia tend to be higher than in the United States. This implies...
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