試題詳解

16. Which of the following statements related to the dividend policies is most correct?
(A) The bird-in-the-hand theory states that investors prefer capital gains than cash dividends
(B) The MM irrelevance theory of dividends means that firms will not pay dividends although dividends contain information
(C) More cash dividends can mitigate agency costs
(D) The residual dividend policy means that managers will try hard to pay dividends.