Which One of the Following Factors Favors a High-Dividend Payout

question 87

Multiple Choice

Which one of the following factors favors a high-dividend payout?

• A)Low transaction costs on stock trades
• B)Lower taxes on capital gains than on dividends
• C)Tax deferment on capital gains, but not on dividend income
• D)Flotation costs
• E)Corporate shareholders

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Definitions:

Sternum

A long flat bone located in the center of the chest, which connects to the ribs via cartilage to form the front part of the rib cage.

Deep

Positioned far away from the surface of the body or from the point of reference.

Negative Feedback

A control system where a trigger leads to a contrary outcome to keep a regulated factor at its optimal state.