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Which of the following investors would likely prefer a cash dividend over a stock dividend? Layton...

Which of the following investors would likely prefer a cash dividend over a stock dividend?
  • Layton prefers when companies let him decide how to benefit from his dividends.
  • Kylie is a high-income earner and prefers to avoid additional taxes this year.
  • Harriett is more focused on long-term outcomes than short-term ones when it comes to investing.
  • Enrique subscribes to the "bird in the hand"theory when it comes to dividends.
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Answer #1

The bird in the hand theory states that a bird in the hand is more valuable than 2 in the bushes. This means that a $1 in dividends is more valuable than $2 capital appreciation. Hence, the correct option is-

Enrique subscribes to the "bird in the hand" theory when it comes to dividends.

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