Quiz Ch 14 – T/F Dividend Preferences and Investor Goals

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: For a retired individual relying on investment income, a preference for high-payout stocks is logical to obtain cash without selling stocks. Conversely, an individual inclined to reinvest dividends might opt for a low-payout company to reduce taxes and brokerage costs.

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