which one is correct please confirm? QUESTION 21 Finance researcher Myron Gordon argues that ____. a. the clientele effect has no influence on share value b. the existence of transaction costs has no impact on the dividend decision c. dividends reduce uncertainty, and thus the payment of dividends will increase the firm's value d. risk-averse shareholders may prefer some dividends over the promise of future capital gains if the interest rate is expected to decline

which one is correct please confirm? QUESTION 21 Finance researcher Myron Gordon argues that ____. a. the clientele effect has no influence on share value b. the existence of transaction costs has no impact on the dividend decision c. dividends reduce uncertainty, and thus the payment of dividends will increase the firm's value d. risk-averse shareholders may prefer some dividends over the promise of future capital gains if the interest rate is expected to decline

Name: which one is correct please confirm?QUESTION 21Finance researcher Myro
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Description: which one is correct please confirm?QUESTION 21Finance researcher Myron Gordon argues that ____. a.the clientele effect has no influence on share value b.the existence of transaction costs has no impact on the dividend decision c.dividends reduce unc

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 3MC

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QUESTION 21

Finance researcher Myron Gordon argues that ____.

	a.	the clientele effect has no influence on share value
	b.	the existence of transaction costs has no impact on the dividend decision
	c.	dividends reduce uncertainty, and thus the payment of dividends will increase the firm's value
	d.	risk-averse shareholders may prefer some dividends over the promise of future capital gains if the interest rate is expected to decline

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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