Which of the Following Is Not a Logical Justification for Dividend

question 82

Multiple Choice

Which of the following is not a logical justification for dividend preference (versus capital gains) in the real world?

• A)institutional restrictions involving dividends.
• B)higher share prices from higher payouts.
• C)a steady source of cash without transaction costs.
• D)differing income tax rates.

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Definitions:

EAI System

Enterprise Application Integration system, a framework that integrates various disparate systems within an organization into a cohesive, functioning whole.

Integrates Existing Systems

The process of combining various IT systems and applications into a single, cohesive system to improve efficiency and functionality.

Sell Goods

The act of transferring ownership of a product from one party to another in exchange for money, constituting the basic activity of retail businesses.

Customer

An individual or entity that purchases goods or services from a business or company.