An investor who pays no tax would be more likely to accept the view that high dividends increase stock values rather than the view that low dividends increase stock values.

Question

Quizplus · Accepted Answer

An investor who pays no tax would not be concerned with tax implications of high dividends and would therefore be more likely to value high dividends as an indicator of a profitable and stable company, leading to greater stock value.

An Investor Who Pays No Tax Would Be More Likely