AFP
CTP · Question #78
(Topic 1) Optimal dividend policy is one that does all of the following EXCEPT:
The correct answer is D. balance tax shield benefits against agency costs. See the full explanation below for the reasoning.
Question
- (Topic 1)
Optimal dividend policy is one that does all of the following EXCEPT:
Options
- Amaintain adequate retained earnings for future growth.
- Bmaximize shareholder value.
- Cdistribute corporate income to investors.
- Dbalance tax shield benefits against agency costs.
How the community answered
(28 responses)- A14% (4)
- B4% (1)
- C4% (1)
- D79% (22)
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