Question: Why might shareholders demonstrate a preference for dividends over the firm reinvesting its earnings? Select one: a. Investors may prefer future cash flows over current

Why might shareholders demonstrate a preference for dividends over the firm reinvesting its earnings?

Select one:

a.

Investors may prefer future cash flows over current cash flows

b.

Investors may be reliant on dividends as a source of income

c.

Investors may be wealthy individuals in high income tax brackets

d.

Each of these answers is correct.

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