The clientele effect refers to
A. the relevance of dividend policy on share value.
B. the firm’s ability to attract stockholders whose dividend preferences are similar to the firm’s dividend policy.
C. the informational content of dividends.
D. the “bird­in­the­hand” argument.
Answer:B
The clientele effect refers to
A. the relevance of dividend policy on share value. B. the firm’s ability to attract stockholders whose dividend preferences are similar to the firm’s dividend policy. C. the informational content of dividends. D. the “bird­in­the­hand” argument.