If Dividends Are Taxed at Higher Rates Than Are Capital

question 19

Multiple Choice

If dividends are taxed at higher rates than are capital gains, then high dividend payout stocks should sell at lower prices, everything else equal, compared to low dividend paying stocks. One implication of this is that investors in _____ tax brackets will tend to prefer high dividend payout stocks.

• A) slightly higher than average
• B) average
• C) slightly lower than average
• D) zero

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Definitions:

Backward Speech

The phenomenon of speech sounds being reversed; often used in studies of language processing and perception.

Independent Variable

The variable that the experimenter manipulates as a basis for making predictions about the dependent variable.

Dependent Variable

In experimental and statistical research, the dependent variable is the outcome being studied, expected to change when the independent variable is altered.

Home Signs

Informal sign languages or gestures developed within families to communicate, often used when there are individuals who are deaf or non-verbal.