The governmental bodies may have approved lists of securities in which certain institutions (like pension funds) should invest. The companies whose securities appear on these lists:

A) Should think cautiously before reducing dividend, as they may be removed from the lists B) Do not have to worry as the overall wealth maximization is much more important C) Try to follow a strictly passive dividend policy D) Are legally authorized to substitute stock dividends for cash dividends

Answer & Solution

Correct Answer: Option B

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List-I	List-II
a. Modigliani Miller approach	1. Commercial papers
b. Net operating income approach	2. Working capital management
c. Short-term money market instrument	3. Capital structure
d. Factoring	4. Arbitrage

The governmental bodies may have approved lists of securities in which...

The governmental bodies may have approved lists of securities in which certain institutions (like pension funds) should invest. The companies whose securities appear on these lists:

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