Which One of the Following Would Tend to Favor a Low-Dividend

question 31

Multiple Choice

Which one of the following would tend to favor a low-dividend payout?

• A)Higher tax rates on capital gains than on dividend income
• B)High flotation cost for equity issues
• C)Endowment fund investors who cannot spend principal
• D)Investors' desire for a high-dividend yield
• E)Elimination of the tax deferral on capital gains

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Definitions:

Bipolar Disorder

A mental condition marked by alternating periods of elation and depression, previously called manic depression.

Intense Sadness

A profound state of sorrow or despair, often associated with major depressive episodes or significant loss.

Stage Fright

Anxiety, fear, or persistent phobia which may be aroused in an individual by the requirement to perform in front of an audience.

Specific Phobia

An intense, irrational fear of or anxiety towards an object or situation, leading to avoidance behavior.