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The Desirability of Owning a High-Dividend Payout Stock Would Increase

Question 220

Multiple Choice

The desirability of owning a high-dividend payout stock would increase if:


A) A tax exemption on the first $100 of dividend income was created.
B) A reduced tax rate on capital gains income was created.
C) A tax exemption on the first $100 of capital gains income was created.
D) The brokerage commissions on purchases and sales of shares were reduced.
E) The number of positive NPV projects available to the firm increased.

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