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Investors are willing to pay a premium for predictable dividends because: a. The return is always...

Investors are willing to pay a premium for predictable dividends because:

a. The return is always higher than capital appreciation.

b. Dividends reduce uncertainty.

c. From a tax standpoint, dividend income is preferred over capital gain income.

d. Constant, predictable dividends are very rare.

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Answer #1

Investors are willing to pay a premium for predictable dividends because:

b. Dividends reduce uncertainty.

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