Capital Gains May Be Preferred by Investors Over Dividends Even

question 31

Multiple Choice

Capital gains may be preferred by investors over dividends even if dividends and capital gains are taxed at the same rate because:

• A) taxes on dividends are withheld immediately.
• B) taxes on capital gains are paid annually.
• C) taxes on capital gains can be deferred.
• D) after-tax dividends are less certain than capital gains.

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Definitions:

Source Amnesia

The inability to remember where, when or how previously learned information has been acquired, while retaining the factual knowledge.

False Recollection

The misremembering or distortion of a memory, often with high confidence in the inaccurate details.

Ferocious Dog

A highly aggressive and intimidating dog, often due to training, instinct, or poor socialization, that may pose a threat to humans or other animals.

Dreamed

The experience of envisioned images, sounds, or other sensations during sleep.