Consistent with the bird-in-the-hand dividend theory

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Reference no: EM13877896

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

A. Dividends are less certain than capital gains.

B. Investors are indifferent whether stock returns come from dividend income or capital gains income.

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

D. Dividends are more certain than capital gains income.

Reference no: EM13877896

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