Shareholders Are More Apt to Prefer a High Dividend Payout

question 39

Multiple Choice

Shareholders are more apt to prefer a high dividend payout if a firm

• A)has high flotation costs.
• B)has a high rate of growth which requires additional funding.
• C)offers high capital gains that are taxed at a favorable rate.
• D)has lower tax rates than the shareholder.
• E)will spend the funds on a high-premium acquisition if the dividend is not paid.

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Definitions:

Rate of Return

A measure of the gain or loss on an investment over a specified period, typically expressed as a percentage of the investment's cost.

Census Conducted

Refers to the systematic collection, analysis, and publication of demographic, economic, and social data pertaining to all individuals in a particular area at a specified time.

Minority Groups

Communities or populations that differ in race, religion, or national origin from the dominant group and are often subject to differential treatment.

United States Census

A decennial count required by the U.S. Constitution that records the number of people living in the United States, as well as demographic information, used for political representation and federal funding allocation.