How may a reduction in cash dividends be in the best interests of current shareholders?
A) dividends are taxed at twice the rate of other gains.
B) the firm will have available cash to increase current investment and future profits.
C) reduced dividends increase managerial compensation, thus increasing their motivation.
D) a reduction of cash dividends cannot be in the best interests of current shareholders.
Correct Answer:
Verified
Q37: The best criterion for success in a
Q43: "Double taxation" refers to:
A)all partners paying equal
Q44: One common reason for partnerships to convert
Q48: By organizing itself as a corporation, a
Q51: Which of the following appears to be
Q67: One corporate activity that is specifically reserved
Q69: A chief financial officer would typically:
A) report
Q71: Ethical decision making by management has a
Q76: Ethical decision making in business:
A) reduces the
Q83: A corporate board of directors should provide
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents