In considering the arguments for the relevance of dividends, which of the following statements is (are) correct?
I. Shareholders who are risk averse may prefer some dividends over the promise of future capital gains.
II. Flotation costs on new stock sales make dividend payout more desirable, rather than issuing new stock.
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

In considering the arguments for the relevance of dividends, which of the following statements is (are) correct? 
I. Shareholders who are risk averse may prefer some dividends over the promise of future capital gains.
II. Flotation costs on new stock sales make dividend payout more desirable, rather than issuing new stock.
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Quizplus · Accepted Answer

The Answer of In considering the arguments for the relevance of dividends, which of the following statements is (are) correct? 
I. Shareholders who are risk averse may prefer some dividends over the promise of future capital gains.
II. Flotation costs on new stock sales make dividend payout more desirable, rather than issuing new stock.
A) I only
B) II only
C) Both I and II
D) Neither I nor II

In Considering the Arguments for the Relevance of Dividends, Which