3) Which three of the following factors are most likely to lead to a stable dividend policy? A) Clientele preferences B) Dividends as a residual; the availability of positive NPV projects C) Mechanisms highlighted by agency theory D) Signalling

3) Which three of the following factors are most likely to lead to a stable dividend policy? A) Clientele preferences B) Dividends as a residual; the availability of positive NPV projects C) Mechanisms highlighted by agency theory D) Signalling

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter1: Accounting As A Tool For Managers

Section: Chapter Questions

Problem 22MC: Which of the following is not an objective used in the balanced scorecard approach? Customer...

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Question

3) Which three of the following factors are most likely to lead to a stable dividend policy?
A) Clientele preferences
B) Dividends as a residual; the availability of positive NPV projects
C) Mechanisms highlighted by agency theory
D) Signalling

Definition Definition Calculation used to evaluate the investment and financing decisions that involve cash flows occurring over multiple periods. NPV is calculated as the difference between the present value of cash inflow and cash outflow. NPV is used for capital budgeting and investment planning as well as to compare similar investment alternatives.

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