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:

Selection Bias

A distortion of statistical analysis resulting from the method of collecting samples leading to an unrepresentative sample.

Target Population

The entire group about which researchers are interested in drawing conclusions or making generalizations, in a statistical study.

Biased Opinion

A preference or inclination that precludes an impartial judgment, often resulting from preconceived notions or prejudices.

Nonsampling Error

Errors not related to the act of selecting a sample from the population, such as measurement and processing errors.