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:

Research and Development Spending

Financial investments in the innovation, improvement, and development of new products, services, or technologies.

Government Proportion

This term is not standard and may refer to the ratio or percentage of government spending or representation in relation to something specific, such as GDP or population, but without more context, a precise definition cannot be provided.

Risk Society

A society increasingly preoccupied with managing and preventing risks, especially those that are man-made, such as environmental disasters, technological accidents, and financial crisis.

Environmental Threats

Refer to any potential detrimental effects on the physical surrounding including pollution, climate change, and natural disasters.