Which of Following Is a Reason for a High-Dividend-Payout Policy

question 28

Multiple Choice

Which of following is a reason for a high-dividend-payout policy?

• A)Dividends are generally taxed at a lower rate than capital gains.
• B)All investors prefer high dividend payments over low dividend payments.
• C)Cash payments today are preferred over uncertain payments in the future.
• D)More cash is left in the company for investing in company projects.

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Definitions:

Corpus Luteum

A temporary endocrine structure in female ovaries, formed after ovulation, which secretes hormones, primarily progesterone, to maintain early pregnancy.

Sperm

Male gametes responsible for fertilizing female gametes during sexual reproduction.

Oocyte

Immature egg.