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Hunter-Best [27]
3 years ago
8

The indifference policy advocates that dividends are irrelevant. firms are indifferent to dividend policy but stockholders are n

ot. stockholders are indifferent to dividend policy only as long as dividends are held constant. dividend policy is irrelevant as long as the firm's investment policy is modified for dividend changes. dividend policy is irrelevant.
Business
1 answer:
n200080 [17]3 years ago
7 0

Answer:

The indifference policy advocates that dividends are irrelevant.

Explanation:

The indifference Policy holds that that dividends do not add value to a company’s stock price.

According to this theory, investors do not need to concern themselves with a company's dividend policy since they have the option to sell a portion of their portfolio of equities if they want cash.

This school of thought believes that a company’s declaration and payment of dividends should have little to no impact on the stock price.

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The unintended consequences of an economic change that are not immediately identifiable but are felt only with time are known in
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We can actually deduce here that the unintended consequences of an economic change that are not immediately identifiable but are felt only with time are known in economics as: D. Secondary effects.

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Unintended consequence, as seen in social sciences are known to be the result or outcome that is gotten from a purposeful action which were not seen coming.

The options that complete the question are:

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2 years ago
Fabri Corporation is considering eliminating a department that has an annual contribution margin of $24,000 and $76,000 in annua
Umnica [9.8K]

Answer:

Net Contribution of the Department  $

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Less: Avoidable fixed cost                 55,000

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This question relates to deleting a product or segment. The net contribution will be computed by deducting the avoidable fixed cost from the contribution margin. The avoidable fixed cost is total fixed cot minus unavoidable fixed cost. Since the net contribution is negative, it implies that the department should be eliminated.

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