Investors are generally risk averse and attach less risk

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Which of the following is true of arguments for dividend relevance?

Investors are generally risk averse and attach less risk to current dividends than future dividends or capital gains.

A firm's value is determined solely by the earning power and risk of its assets.

The value of a firm is unaffected by dividends as it functions in a perfect market.

A clientele effect exists which causes a firm's shareholders to receive the dividends that they expect.

Reference no: EM13814868

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