Which One of the Following Favors a Low Dividend Policy

question 61

Multiple Choice

Which one of the following favors a low dividend policy?

• A)the tax on capital gains is deferred until the gain is realized
• B)few, if any, positive net present value projects are available to a firm
• C)a majority of the shareholders has a low relevant tax rate
• D)a majority of the shareholders has better investment opportunities with similar risks
• E)corporate tax rates exceed personal tax rates

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Methods or paths taken to simplify tasks, increase efficiency, or expedite processes.

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The effectiveness and speed with which decisions are made, often emphasizing the quality of outcomes with minimal time and resources.

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Mistakes made due to flawed reasoning or misinterpretation of information leading to incorrect conclusions or decisions.

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