One Possible Reason That Shareholders Often Insist on Higher Dividends

question 47

Multiple Choice

One possible reason that shareholders often insist on higher dividends is

• A)they agree with Miller and Modigliani.
• B)the capital gains tax disadvantage.
• C)the stock market is efficient.
• D)they do not trust managers to spend retained earnings wisely.

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Definitions:

Ageism Breakdown

The process of deconstructing ageism, which involves dismantling stereotypes, biases, and discrimination based on a person's age.

Cultural Ageism

Occurs when one generation devalues the actions of another generation because it is different from what they are used to.

Paternalistic Ageism

The idea that children and young adults lack maturity and therefore require older adults to make decisions for them.

Elder Abuse

A single or repeated act against an older person in which harm or distress is caused.