Question

The clientele effect implies that: (a) investors prefer high dividend paying shares (b)investors have varying preferences...

The clientele effect implies that:

(a) investors prefer high dividend paying shares

(b)investors have varying preferences regarding dividends

(c) low tax bracket investors are in different to dividends

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Answer #1

The correct answer is option b i.e. The clientele effect implies that investors have varying preferences regarding dividends.

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