Which of the following is true of arguments for dividend


  • Which of the following is true of arguments for dividend relevance?
  1. Investors are generally risk averse and attach less risk to current dividends than future dividends or capital gains.
  2. A firm's value is determined solely by the earning power and risk of its assets.
  3. The value of a firm is unaffected by dividends as it functions in a perfect market.
  4. A clientele effect exists which causes a firm's shareholders to receive the dividends that they expec

 

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Finance Basics: Which of the following is true of arguments for dividend
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