The clientele effect for dividends states that ___________.
a. investors are generally indifferent as to the amount of dividends they receive.
b. investors generally prefer firms that pay no dividends because of the taxes associated with dividends.
c. investors generally prefer firms that pay high dividends because of the income they provide.
d. investors generally prefer firms that pay low dividends.
e. investors seek out firms that have a dividend policy consistent with their own desires.

Respuesta :

Answer:

Option E

Explanation:

In simple words, Dividend clientele relates to the identity of such a group in shareholders of a corporation who have a common opinion of the dividends policies of the firm. Shareholders of a customer base with dividends typically base their expectations on equivalent income status, tax factors or maturity on a given dividend distribution ratio.

Thus, from the above we can conclude that the correct option is E.