An Investor Is More Likely to Prefer a High Dividend

question 64

Multiple Choice

An investor is more likely to prefer a high dividend payout if a firm:

• A)has high flotation costs.
• B)has few, if any, positive net present value projects.
• C)has lower tax rates than the investor.
• D)has a stock price that is increasing rapidly.
• E)offers substantial gains on its equities, which are taxed at a favorable rate.

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Definitions:

Kuder-Richardson

A method of calculating internal consistency by using all the possible split-half combinations. This is done by correlating the scores for each item on the test with the total score on the test and finding the average correlation for all of the items.

Americans with Disabilities Act

A civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life.

Accommodations

Adjustments made in educational or workplace settings to support the needs of individuals with disabilities or specific challenges.

Internal Consistency

Internal consistency measures the reliability of a test based on the correlations between different items on the same test.