Which of the following is not an example of market imperfections that make dividend policy relevant?
A) Institutional restrictions on stock holdings
B) Differences in dividend-payout ratios
C) Transaction costs such as brokerage fees
D) Differences among investors in marginal tax rates

Question

Quizplus · Accepted Answer

Differences in dividend-payout ratios are not a market imperfection; they are a result of company policy decisions. Market imperfections typically involve external factors like taxes, transaction costs, or institutional restrictions.

Which of the Following Is Not an Example of Market