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

---

Definitions:

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by widespread unemployment, severe deflation, and financial panic.

Minority Workers

Refers to employees belonging to racial, ethnic, or other groups that are underrepresented or have historically faced discrimination in the workplace.

Discrimination

Unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Unions

Organizations formed by workers to collectively negotiate with employers over wages, benefits, working conditions, and protect members' rights and interests.