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The indifference policy advocates that A. Dividends are irrelevant B. Firms are

ID: 2614789 • Letter: T

Question

The indifference policy advocates that
A. Dividends are irrelevant B. Firms are indifferent to dividend policy but stockholders are not C. Stockholders are indifferent to dividend policy only as long as dividends are held constant D. Dividend policy is irrelevant E. Dividend policy is irrelevant as long as the firm’s investment policy is modified for dividend changes The indifference policy advocates that
A. Dividends are irrelevant B. Firms are indifferent to dividend policy but stockholders are not C. Stockholders are indifferent to dividend policy only as long as dividends are held constant D. Dividend policy is irrelevant E. Dividend policy is irrelevant as long as the firm’s investment policy is modified for dividend changes
A. Dividends are irrelevant B. Firms are indifferent to dividend policy but stockholders are not C. Stockholders are indifferent to dividend policy only as long as dividends are held constant D. Dividend policy is irrelevant E. Dividend policy is irrelevant as long as the firm’s investment policy is modified for dividend changes

Explanation / Answer

Indifference policy advocates that dividend policy is irrelevant for the stockholders