The Desirability of Owning a High-Dividend Payout Stock Would Increase

question 329

Multiple Choice

The desirability of owning a high-dividend payout stock would increase if:

• A) A tax exemption on the first $100 of dividend income was created.
• B) A reduced tax rate on capital gains income was created.
• C) A tax exemption on the first $100 of capital gains income was created.
• D) The brokerage commissions on purchases and sales of shares were reduced.
• E) The number of positive NPV projects available to the firm increased.