Which One of the Following Favors a Low Dividend Policy

question 24

Multiple Choice

Which one of the following favors 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 a firm.
• C) A majority of the shareholders have a low tax rate.
• D) A majority of the shareholders have better investment opportunities than the firm.
• E) The presence of an agency conflict with the company's senior managers.

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Definitions:

Systematic Desensitization

A behavioral therapy technique that gradually exposes the individual to the object of their fear in a controlled manner, alongside relaxation exercises, to reduce phobic responses.

Flooding

An exposure therapy technique used in psychology to treat phobias and anxiety by exposing the patient to their fear at full intensity.

Social Skills Training

A behavioral therapy that teaches individuals the skills needed for effective social interactions and communication.

Social Skills Training

A behavioral therapy used to improve interpersonal skills through practice and instruction in areas such as communication, assertiveness, and empathy.