Which Group of Investors Would Most Likely Prefer a High

question 163

Multiple Choice

Which group of investors would most likely prefer a high dividend-payout stock, given the existence of taxes and transactions costs?

• A)Investors saving for retirement.
• B)Investors in a high tax bracket.
• C)Investors needing current income.
• D)Investors seeking high capital gains.

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Definitions:

Alditol

A type of sugar alcohol formed by the reduction of the aldehyde or ketone group in monosaccharides.

L-Erythrose

A four-carbon sugar, or tetrose, with the chemical formula C4H8O4, one of the simplest aldose configurations.

NaBH4

Sodium borohydride, a reducing agent widely used in organic chemistry for the reduction of aldehydes, ketones, and aldehydes to alcohols.

Alditol

A type of sugar alcohol resulting from the hydrogenation of an aldose, used in food as a low-calorie sweetener.