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Basic Question 5 of 6

Payment of dividends can help reduce the agency conflicts between:

A. managers and shareholders.
B. managers and debtholders.
C. shareholders and debtholders.

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

describe types of information (signals) that dividend initiations, increases, decreases, and omissions may convey;

explain how agency costs may affect a company's payout policy;

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