2. Other dividend policy issues Aa Aa The term clientele effect refers to the tendency of firms to attract investors who like their dividend policies. Three potential investors are described in the table. Indicate which type of firms they are most likely to be attracted to. Potential Investors Types of Firms Stockholders in their peak earning years Investors who have a preference for current investment income Retired individuals, pension funds, and university endowment funds Low-dividend-payout firms High-dividend-payout firms Spandelay Industries Inc. is a typical company that is very concerned with meeting investors' expectations and keeping investors happy. Its earnings tend to fluctuate from year to year because of the nature of the business the company is in. Which of these statements most likely describes Spandelay Industries Inc.'s dividend policy? Spandelay Industries Inc. will use a residual dividend policy because it will increase the firm's rs and increase the value of the firm Spandelay Industries Inc. will pay a stable, predictable dividend because it will lower the firm's rs and increase the value of the firm