Which of following is a reason for a high-dividend-payout policy?
A) Dividends are generally taxed at a lower rate than capital gains.
B) All investors prefer high dividend payments over low dividend payments.
C) Cash payments today are preferred over uncertain payments in the future.
D) More cash is left in the company for investing in company projects.
Correct Answer:
Verified
Q23: Low-dividend-payout policy may require less need for
Q24: Investors who wish to avoid paying taxes
Q25: In a world of taxes but no
Q26: The optimal dividend policy for a firm
Q27: In a world with no taxes and
Q29: Low-dividend stocks are preferred by clients who
Q30: All investors want the maximum amount of
Q31: Which of following is a reason for
Q32: In a world without taxes or
Q33: Optimal dividend policy will differ among shareholders
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