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Which of the following should not influence a firm’s dividendpolicy decision?(Po

ID: 2661548 • Letter: W

Question

Which of the following should not influence a firm’s dividendpolicy decision?(Points: 4)
      The firm’s ability to accelerate or delayinvestment projects.
       A strong preference bymost shareholders in the economy for current cash income versuscapital gains.
       Constraints imposed bythe firm’s bond indenture.
       The fact that much ofthe firm’s equipment has been leased rather than bought andowned.
       The fact that Congressis considering tax law changes regarding the taxation of dividendsversus capital gains.

Explanation / Answer

Choice D The fact that much of the firm's equipment has been leased ratherthan bought and owned.

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