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Commerce · Q254

Business Finance

Graduate and Post Graduate · Commerce · question 254

Q254

The governmental bodies may have approved lists of securities in which certain institutions (like pension funds) should invest. The companies whose securities appear on these lists:

A.
Should think cautiously before reducing dividend, as they may be removed from the lists
B.
Do not have to worry as the overall wealth maximization is much more important
Answer
C.
Try to follow a strictly passive dividend policy
D.
Are legally authorized to substitute stock dividends for cash dividends

Answer: Option B

Solution

Answer: Option B
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