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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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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.