Which of the Following Will Lower the Rate of Return

question 80

Multiple Choice

Which of the following will lower the rate of return on a stock whose price has doubled since you bought it?

• A) an increase in the capital gains tax from 15% to 20%
• B) an increase in the tax rate on dividend income from 15% to 20%
• C) persistently low inflation rates
• D) the Federal Reserve acts to lower interest rates

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Definitions:

Vote

To express a choice or decision in an election, meeting, or other decision-making process through a ballot, show of hands, or other means.

Plan of Merger

A detailed proposal outlining the terms, conditions, and process of merging one company with another.

Sufficient Information

The adequate amount of data or facts necessary to facilitate decision-making or to fulfill a specific requirement.

Proposed Combination

A suggest plan or strategy for merging two or more entities or ideas into a single unit.