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:

Classical Conditioning

A learning process that creates associations between a naturally occurring stimulus and a previously neutral stimulus.

Operant Conditioning

An educational technique that influences the strength of a behavior by awarding reinforcements or imposing penalties.

Operant Conditioning

An approach to teaching that relies on using incentives and penalties for actions, focusing on how outcomes affect actions.

Classical Conditioning

Learning by the method of associating an environmental stimulus with one that happens naturally.