Gordon’s “bird-in-the-hand” argument suggests that
A. dividends are irrelevant.
B. firms should have a 100 percent payout policy.
C. shareholders are generally risk averse and attach less risk to current dividends.
D. the market value of the firm is unaffected by dividend policy.
Answer:C
Gordon’s “bird-in-the-hand” argument suggests that
A. dividends are irrelevant. B. firms should have a 100 percent payout policy. C. shareholders are generally risk averse and attach less risk to current dividends. D. the market value of the firm is unaffected by dividend policy.