Which of the Following Shareholders Tend to Favor a High

question 38

Multiple Choice

Which of the following shareholders tend to favor a high dividend policy?
I.retired individuals
II.endowment funds
III.corporate investors
IV.investors with high dividend tax rates but low capital gains tax rates

• A)I and III only
• B)II and IV only
• C)I, II, and III only
• D)II, III, and IV only
• E)I, II, III, and IV

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Definitions:

Gross Profit

The difference between sales and the cost of goods sold, representing the profit from buying and selling goods before other expenses are taken out.

Cost of Merchandise Sold

The total expense incurred by a company to buy or manufacture the goods sold during a period.

Gross Profit

The difference between revenue from sales and the cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.

Sales

The transactions involving the exchange of goods or services for money, reflecting the primary revenue source for most businesses.