In a world of taxes but no transaction costs, the preferred strategy to maximize wealth is to pay dividends
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: In a world of taxes but no transaction costs, the preferred strategy to maximize wealth is to pay NO dividends.
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A/An ______ represents unwritten expectations between employees and organizations about the way employees are treated within an organization.
A. social network B. affect-based trust C. psychological contract D. trust outcome
Soledad and Winston are partners who share income in the ratio of 1:3 and have capital balances of $100,000 and $140,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $130,000. What amount of loss on realization should be allocated to Soledad?
A) $60,000 B) $27,500 C) $92,500 D) $32,500
An agency by ratification occurs when the principal ________
A) accepts an unauthorized act created by an unauthorized agent B) accepts an authorized act created by an authorized agent C) creates the appearance of an agency that in actuality does not exist D) accepts an act carried out under the implied authority of an agent
A proponent of the managerial theory of social responsibility would argue that ________
A) managers should maximize profits and leave social responsibility to the government B) businesses should act carefully so as not to injure the fabric of society C) firms should seek to maintain the trust of internal and external constituents and interest groups, not just stockholders D) business managers and members of the board of directors should seek professional certification