Question: This week's topic is: Capital Structure Here is the question: What do the three theories indicate regarding the actions management should take with respect to

This week's topic is: Capital Structure

Here is the question:

What do the three theories indicate regarding the actions management should take with respect to dividend payouts?

  1. Dividend Irrelevance Theory
  1. Dividend preference (bird-in-the-hand) Theory
  1. Tax Preference Theory:
  • **Please note, the question is not about what the theories are but on what does each theory indicate regarding the actions management should take with respect to dividend payouts**

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