Which One of the Following Is an Argument in Favor

question 38

Multiple Choice

Which one of the following is an argument in favor of a low dividend policy?

• A)Few,if any,positive net present value projects are available to the firm.
• B)Only the gain on a sale of stock is taxed.
• C)Agency costs
• D)Investor desire for current income
• E)Lack of investor self-control

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Definitions:

Disengagement Theory

A theory proposing that aging individuals and society gradually withdraw from each other, to the mutual benefit of both.

Current Trends

The general direction in which something is developing or changing, often used to describe shifts in markets, technology, or social behaviors.

Selective Optimization

A strategy that involves focusing on and improving one's strengths while compensating for weaknesses, often used in the context of aging and development.

Compensation

Payment or reward typically given in exchange for services rendered or as reparation for loss.