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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