Question

As per bird in hand theory high dividend payout is ______ to low pay out
A) preferred
B) not preferred
C) irrelevant for investors
D) none of above

Answer 1

Answer:

OPTION A IS CORRECT.

As per bird in hand theory high dividend payout is ______ to low pay out

A) preferred

EXPLANATION:

the bird in hand theory is proposed by myron gordan and john lintner,according to which the investors prefer a high dividend payout, as they think dividends are rickless.