Size of firm has no effect on tendency to pay dividends

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Reference no: EM131065197

Which one of the following statements is correct?

Generally speaking, the size of a firm has no effect on its tendency to pay dividends.

The market crash and the accounting scandals in the early 2000s tended to cause financially stable firms to cease paying cash dividends.

The majority of firms either started paying or increased their dividends per share in response to the May 2003 change in dividend taxation.

Firms tend to prefer cash dividends over share repurchases for their flexibility and tax benefits.

A non-dividend-paying firm is more apt to do a stock repurchase than to commence paying dividends.

Reference no: EM131065197

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