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

question 262

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:

Symptoms

Signs or indications of a disease, disorder, or other physical or mental conditions.

Sympathetic

Pertains to the part of the autonomic nervous system that controls the body's responses to stress and activates the flight-or-fight response.

Parasympathetic

Part of the autonomic nervous system responsible for conserving energy and controlling bodily functions during restful states.

Peripheral Nervous System

The components of the nervous system, including nerves and ganglia, that exist outside the brain and spinal cord.