Which of the Following Is Not a Logical Justification for Dividend

question 8

Multiple Choice

Which of the following is not a logical justification for dividend preference (vs.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

---

Definitions:

Vertical Collectivism

A cultural value that emphasizes the importance of the community or group over the individual, with a strong hierarchy and loyalty to the group.

Authority Ranking

A system of organizing social relationships based on hierarchies of power and authority, where individuals' decisions or status are influenced by their position within the hierarchy.

Equality Matching

A principle of social justice where individuals aim to ensure fairness and equality by treating each person the same, often by sharing resources equally.

Community Sharing

A social arrangement characterized by the collective ownership and use of resources among community members.