Because of the tax laws of the 1960s and 1970s,shareholders requested that corporations:
A) only pay dividends annually.
B) keep dividends for corporate investments.
C) increase the amount of dividends.
D) make no changes to dividend payments.

Question

Quizplus · Accepted Answer

During the 1960s and 1970s, tax laws were structured in a way that favored capital gains over dividend income, leading shareholders to prefer that corporations reinvest earnings rather than pay them out as dividends.

Because of the Tax Laws of the 1960s and 1970s,shareholders