Asked by Jagmeet Sahota on May 02, 2024
Verified
Corporate investors own the majority of the outstanding shares supports a low-dividend policy.
Corporate Investors
Organizations that invest in other companies’ securities, often for strategic purposes beyond mere financial gain.
Low-Dividend Policy
A low-dividend policy is a corporate strategy where a company decides to retain a larger portion of earnings for reinvestment rather than distributing it to shareholders as dividends.
- Appreciate the significance of corporate and tax policies in influencING dividend decision-making processes.
Verified Answer
CB
Crystal BernerMay 03, 2024
Final Answer :
False
Explanation :
Corporate investors typically prefer a low-dividend policy because they can defer taxes on their investment gains, but this does not mean they own the majority of the outstanding shares. Ownership varies by company and is not directly linked to dividend policy preferences.
Learning Objectives
- Appreciate the significance of corporate and tax policies in influencING dividend decision-making processes.
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