Which One of the Following Favors a Low Dividend Policy

question 61

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 has a low relevant tax rate
• D)a majority of the shareholders has better investment opportunities with similar risks
• E)corporate tax rates exceed personal tax rates

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Definitions:

Moral Panics

Social phenomena where public fear and overreaction are provoked by media coverage, often about issues that are perceived to threaten societal norms and values.

Elite-Engineered

A term referring to scenarios or policies that are designed and implemented by a society's elite or ruling class, often serving their interests.

Grassroots Model

refers to a method of community organizing or activism that starts at the local level with ordinary people, aiming to bring about social or political changes from the bottom up.

Moral Panic

A widespread feeling of fear, often irrational, that some evil threatens the well-being of society, leading to a desire for strict measures to be taken.