High-dividend-payout policy increases transaction costs for both the firm and the shareholder compared to a simple sale of stock by the shareholder to get cash

Indicate whether the statement is true or false.


Answer: FALSE
Explanation: Shareholders avoid transaction costs when they can receive dividends rather than sell stock to get cash.

Business

You might also like to view...

Which of the following is an example of relation-oriented (leadership) behavior?

a. work scheduling b. maintaining efficiency c. resolving personal or interpersonal problems d. enforcing rules

Business

Which is NOT included in SMART goals?

a. specific b. attainable c. reliable d. timely

Business

Edward Bernays is remembered as a public relations pioneer largely due to his straight-ahead journalistic approach to the practice of public relations

Indicate whether the statement is true or false

Business

A corporation is a business that is legally separate and distinct from its owners

Indicate whether the statement is true or false

Business