Asked by China lilian on Jun 06, 2024
Verified
Stockholders' desire for current income is a factor that favor a high dividend policy.
Current Income
The income generated from an investment or asset in the form of interest, dividends, or other earnings, typically over a year.
High Dividend Policy
A strategy employed by companies to distribute a significant portion of earnings to shareholders in the form of dividends.
- Comprehend factors shaping preferences towards dividend policy among investors.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
True
Explanation :
Stockholders may prefer a high dividend policy when they seek current income from their investments, as dividends provide a direct cash return on their shares.
Learning Objectives
- Comprehend factors shaping preferences towards dividend policy among investors.
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