Which of the Following Is a Reason for a High-Dividend-Payout

question 19

Multiple Choice

Which of the 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.
• E) High dividends tend to benefit companies in the long-term.

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Definitions:

Love

A complex set of emotions, behaviors, and beliefs associated with strong feelings of affection, warmth, and respect for another person.

Humanistic

A psychological perspective focusing on individual potential and stress on the importance of growth and self-actualization.

Psychology

The scientific study of the mind and behavior, encompassing various aspects of human experience and including different fields such as cognitive, emotional, and social processes.

Potential for Growth

The inherent ability or capacity of an organism, individual, or entity to expand, develop or improve.