Which One of the Following Is an Argument in Favor

question 24

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 stockholders have minimal taxable income.
• D) corporate tax rates exceed personal tax rates.

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Definitions:

Commonality Corollary

A principle that suggests individuals have common traits or experiences that link them together.

Predict the Future

The practice or ability to make forecasts about upcoming events based on current or past information.

Hostile Person

An individual who frequently exhibits anger, aggression, or resentment towards others.

Subjective Accounts

Personal perspectives or descriptions of experiences, which are influenced by one's own feelings and opinions.