Question

The characteristics of a firm’s dividend policy may include I. Paying a dividend to reduce investor...

The characteristics of a firm’s dividend policy may include

I.

Paying a dividend to reduce investor uncertainty.

II.

A stock repurchase, rather than a regular dividend, when the company can reallocate profits

into highly successful projects.

III.

Paying dividends and issuing debt to finance new projects.

IV.

A regular dividend increase when earnings stability is reduced.

A)

I, II, III, and IV

B)

I, II, and III

C)

I and II

D)

II and III

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Answer #1

Option b ) I.II and II are correct.

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