The clientele effect refers to ________. A) the relevance of dividend

The clientele effect refers to ________.

A) the relevance of dividend policy on a firm’s share value
B) a firm’s ability to attract stockholders whose dividend preferences are similar to the firm’s dividend policy
C) the informational content of dividends that helps in predicting the future earnings and growth of a firm
D) the “bird-in-the-hand” argument

ANSWER

B