Consistent with the bird-in-hand dividend theory

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Which of the following statements would be consistent with the bird-in-hand dividend theory?

There is no relationship between a firm's dividend policy and the value of its common stock.

Dividends are more certain than capital gains income.

Wealthy investors prefer corporations to defer dividend payments because capital gains produce greater after tax income

Dividends are less certain than capital gains.

Reference no: EM131188482

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