Multiple Choice
The tax clientele effect implies that share price is indifferent to dividend policy because:
A) share price depends on the value of assets in place.
B) investors have no say in dividend policy.
C) in equilibrium,the range of dividend policies available satisfies the needs of investors so that one clientele is as good as another.
D) investors in high marginal tax brackets would pay a premium for shares of companies that pay no dividends.
Correct Answer:
Verified
Correct Answer:
Verified
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