Which of the Following Statements Is False

question 25

Multiple Choice

Which of the following statements is false?

• A)Resident investors,who have marginal tax rates equal to or less than the company tax rate,will always prefer that companies pay dividends instead of retaining profits.
• B)The payment of dividends,franked or unfranked,can reduce future capital gains tax.
• C)An unexpected increase in dividends should cause an increase in the market's expectation of future earnings.
• D)None of the given options.

Understand the role of grit and deliberate practice in achieving entrepreneurial success.

Acknowledge the significance of parental influence and cultural differences on one’s approach to failure.

Identify the causes and effects of failure in startups.

Explain the importance of the ability to pivot to prevent significant failures.

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Definitions:

Buy Stocks on Margin

The practice of borrowing money from a broker to purchase stock, using the bought securities as collateral for the loan.

Risk Free Asset

An investment that is expected to return its original value without any loss and with a certain rate of interest; considered to have zero default risk.

Rate of Return

The increase or decrease in the value of an investment during a set time frame, represented as a proportion of the investment's original price.

Level of Risk

The degree of uncertainty associated with an investment or decision, often regarding the potential for loss.