Which of the Following Is Not a Logical Justification for Dividend

question 21

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:

Conceptual Understandings

The grasp of ideas, principles, and theories, enabling deep comprehension beyond mere facts or procedures.

Perceptual Cues

Visual or other sensory information that helps an organism understand the environment and make decisions.

Memory Development

The process by which individuals encode, store, and retrieve information over time.

Secondary Circular Reactions

A developmental stage in infants where they repeat actions to trigger a desired response in their environment, typically observed between 4 and 8 months of age.