Which One of the Following Is an Argument in Favor

question 32

Multiple Choice

Which one of the following is an argument in favor of a low dividend policy?

• A)The tax on capital gains is deferred until the gain is realized.
• B)Few, if any, positive net present value projects are available to the firm.
• C)A preponderance of shareholders have minimal taxable income.
• D)A majority of shareholders have other investment opportunities that offer higher rewards
• With similar risk characteristics.
• E)Corporate tax rates exceed personal tax rates.

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Definitions:

Commanding Tone

A style of communication that expresses authority, requiring attention or obedience from the audience.

Rational Appeal

A persuasive strategy that utilizes logical arguments and factual evidence to convince an audience.

Factual Material

Information or content based on facts, real events, and data, without any fabricated elements.

Sensational Words

Words or phrases designed to evoke strong, often exaggerated emotions or interest in the audience.