Which one of the following is an argument in favor of a low dividend policy?
A) The tax on capital gains is deferred until the gain is realized.
B) Few, if any, positive net present value projects are available to the firm.
C) A preponderance of stockholders have minimal taxable income.
D) A majority of stockholders have other investment opportunities that offer higher rewards with similar risk characteristics.
E) Corporate tax rates exceed personal tax rates.
Correct Answer:
Verified
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