Which of the following supports the bird-in-the-hand dividend ...

[Kikoku]

Which of the following supports the bird-in-the-hand dividend theory?
 
  A) Investment decisions are not influenced by dividend policy.
  B) Capital mix decisions are not influenced by dividend policy.
  C) Investors prefer dividends to capital gains because of the time value of money.
  D) Increasing a firm's dividends transfers risk and ownership from the current shareholders to
  new owners.

Question 2

The most important reasons firms hold cash balances are the transaction and precautionary
  motives.
 
  Indicate whether the statement is true or false

[ngr69]

Answer to Question 1

C

Answer to Question 2

TRUE

[Kikoku]

Excellent

[mochi09]

Thanks for the timely response, appreciate it