Asked by Mitchell Allen on May 10, 2024
Verified
Investors' dislike of uncertainty is a factor that favor a high dividend policy.
Dislike of Uncertainty
A preference for predictable environments and a tendency to avoid situations with uncertain outcomes.
High Dividend Policy
A financial strategy where a company decides to pay out a high proportion of its earnings in the form of dividends to its shareholders.
Investors'
individuals or entities that allocate capital with the expectation of receiving financial returns.
- Discern the influencers on dividend policy preferences within the investor population.
Verified Answer
RF
ratila farahMay 14, 2024
Final Answer :
True
Explanation :
Investors generally prefer certainty to uncertainty, and a high dividend policy provides more predictable income, which is valued by investors, especially those seeking regular income or those who are risk-averse.
Learning Objectives
- Discern the influencers on dividend policy preferences within the investor population.