Asked by Sophony Henri on May 22, 2024
Verified
Pension plans own the majority of the outstanding sares supports a low-dividend policy.
Pension Plans
Financial programs set up to provide income to individuals during retirement, usually funded by employers or the government.
Low-Dividend Policy
A strategy adopted by companies to retain more earnings by distributing lower dividends to shareholders, typically to reinvest in the company's growth.
- Grasp the impact of corporate and tax policies on dividend decisions.
Verified Answer
LW
Lashandra williamsMay 28, 2024
Final Answer :
False
Explanation :
Pension plans, like other institutional investors, may have diverse investment strategies, and their preference for dividend policies can vary. There is no universal rule that pension plans predominantly support a low-dividend policy, as their goals can range from seeking steady income through dividends to focusing on capital growth.
Learning Objectives
- Grasp the impact of corporate and tax policies on dividend decisions.
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