Answered: The optimal distribution strategy…

The optimal distribution strategy achieves a balance between capital gains and current dividends in order to raise the stock price of the company. true or false

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 13QTD

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Question

The optimal distribution strategy achieves a balance between capital gains and current dividends in order to raise the stock price of the company.

true or false

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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