Which of the following is considered in designing a dividend policy that is favorable to wealthy owners?
A) the tax status of the firm's owners
B) the political risk of the firm
C) the liability of the firm's owners
D) the reinvestment risk of the firm

Question

Quizplus · Accepted Answer

The tax status of the firm's owners is considered in designing a dividend policy that is favorable to wealthy owners. They prefer policies that result in lower taxes, such as lower dividend payouts and capital gains, as opposed to higher dividend payments that result in higher taxes.

Which of the Following Is Considered in Designing a Dividend