A Valid Reason for a fiRm to Reduce or Eliminate

question 119

True/False

A valid reason for a firm to reduce or eliminate its cash dividends is if the tax laws have recently
changed such that dividends are taxed at an investor's marginal rate while capital gains are tax
exempt.

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Definitions:

Relaxant

A substance or activity that helps reduce tension, anxiety, or stiffness.

Alcohol

A chemical compound that is a psychoactive drug, commonly found in beverages such as beer, wine, and spirits, and can affect the central nervous system.

Methamphetamine

A powerful, highly addictive stimulant drug that affects the central nervous system, leading to severe physical and psychological effects.

Postsynaptic Membrane

The part of the neuron that receives signals from another neuron at a synapse.