An investor in a relatively high personal income tax bracket would likely prefer a ﬁrm with a high
dividend payout rate.

Name: An investor in a relatively high personal income tax bracket would likely prefer a ﬁrm with a high dividend payout rate.
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Question

Quizplus · Accepted Answer

Investors in high tax brackets often prefer firms with low dividend payout rates to minimize taxable income and instead favor capital gains, which are typically taxed at a lower rate.

An Investor in a Relatively High Personal Income Tax Bracket