The "bird in the hand" argument is based on the argument that:
A)Dividends are preferred to capital gains
B)Dividends and capital gains are perfect substitutes
C)Capital gains are preferred to dividends
D)Investors don't value dividends, hence dividends are irrelevant

Question

Quizplus · Accepted Answer

The "bird in the hand" argument suggests that investors prefer dividends over capital gains because dividends provide immediate, certain returns, whereas capital gains are uncertain and depend on future market conditions.

The "Bird in the Hand" Argument Is Based on the Argument