Quiz on lesson ” The Irrelevance of Dividends “

1. What does Ben Felix believe about dividends and their relevance to stock selection?

A) Dividends are a critical factor in determining which stocks will have good future returns.

B) Dividends are an important component of total returns, but they are not relevant in determining future returns of stocks.

C) Dividends are the most important factor in determining future returns of stocks.

2. What is the basis for the irrelevance of dividends according to Ben Felix?

A) Dividends have no effect on share value.

B) Dividends are the result of a reduction in share value.

C) The market is irreparably broken and dividends have no effect on share value.

3. What does Ben Felix believe about the idea that management of a dividend-paying company is positively affected by its dividend policy?

A) There is robust empirical evidence to support this idea.

B) There is no basis to believe this idea.

C) This idea is not mentioned in the summary.

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