Which one of these statements is correct regarding various types of investors?
A) Taxpayers in high tax brackets tend to prefer dividends over capital gains.
B) Pension funds are taxed at a low rate of 10 percent on both dividends and capital gains.
C) Corporations can exclude at least 70 percent of their dividend income from taxes.
D) Pension funds pay taxes on capital gains but not on dividends.
E) Corporations can exclude at least 70 percent of both their dividend income and capital gains from taxes.
Correct Answer:
Verified
Q31: Behavioral finance supports the
A)replacement of cash dividends
Q32: Shareholders are more apt to prefer a
Q33: Agency costs provide justification for
A)higher dividends over
Q34: Companies are more apt to choose repurchases
Q35: Which one of these statements is true?
A)Transaction
Q37: The observed empirical fact that stocks attract
Q38: Observation and research shows that
A)dividends have almost
Q39: The argument that selling stock involves too
Q40: Which of the following tend to keep
Q41: In a reverse stock split,
A)the number of
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