According to the Bird-in-hand theory, which of the following dividend policies is preferred by…
The Bird-in-hand theory favours high dividend payouts. It treats current dividends as less uncertain than potential future capital gains, so investors attach value to…
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According to the Bird-in-hand theory, which of the following dividend policies is preferred by investors ?
Answer and explanation
Correct answer A
The Bird-in-hand theory favours high dividend payouts. It treats current dividends as less uncertain than potential future capital gains, so investors attach value to receiving dividends now.
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Gujarat SET (GSET)