Matters are of importance

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Reference no: EM132404221

Please help with a multiple choice question

When considering distribution of profits the following matters are of importance

Possible answers are

1) investors empirically value companies that distribute stable dividends to shareholders

2) differences between capital gain tax and dividend tax should affect the ratio of dividends and share buyback

3) distribution of dividends increases the wealth of the shareholders by the amount of cash flow the receive

4) large dividends often imply management genuine belief into the prospect of the company

Reference no: EM132404221

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