15. This question technically relates to Chapter 14, but we also

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15. This question technically relates to Chapter 14, but we also

15. This question technically relates to Chapter 14, but we also discussed this in lecture. Which of the following statements about dividend policy is (are) most likely TRUE:

1. Tax rates are the primary determinate of dividend policy
2. Increases in dividends tend to lag increases in earnings per share
3. Management is usually reluctant to decrease dividend payments unless absolutely necessary

1. I
2. II, III

1. II
2. III
3. I, III

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15. This question technically relates to Chapter 14, but we also