Which of the following statements is least accurate? A. The variance on a well-diversified portfolio is a function of systematic risk only. B. When market is inefficient or there is tax, shareholders' wealth is not affected by a company's choice between dividend and repurchase. C. Although dividend is taxable, there is a group of investors who prefer cash dividends over repurchase. D. Companies are reluctant to cut dividends as dividends tend to be sticky.

Which of the following statements is least accurate? A. The variance on a well-diversified portfolio is a function of systematic risk only. B. When market is inefficient or there is tax, shareholders' wealth is not affected by a company's choice between dividend and repurchase. C. Although dividend is taxable, there is a group of investors who prefer cash dividends over repurchase. D. Companies are reluctant to cut dividends as dividends tend to be sticky.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter13: Valuation: Earnings-based Approach

Section: Chapter Questions

Problem 1QE

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