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Basic Question 7 of 10

In a world of zero taxes and perfect markets, we can show that the firm's dividend decision does not affect shareholder wealth. We simply show how the shareholder can undo the dividend policy of the firm by ______.

A. contacting top management
B. informing the financial press
C. transacting in the marketplace

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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

compare theories of dividend policy and explain implications of each for share value given a description of a corporate dividend action;

CFA® 2025 Level II Curriculum, Volume 3, Module 16.