Which One of the Following Is an Argument in Favor

question 41

Multiple Choice

Which one of the following is an argument in favor of 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 the firm.
• C)A preponderance of shareholders have minimal taxable income.
• D)A majority of shareholders have other investment opportunities that offer higher rewards with similar risk characteristics.
• E)Corporate tax rates exceed personal tax rates.

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Definitions:

Cellular Technology

A type of wireless communication that is most commonly used for mobile phone networks, relying on a network of cell sites to transmit data.

4G

The fourth generation of broadband cellular network technology, succeeding 3G and offering higher speeds.

3G

The third generation of mobile telecommunications technology, enabling faster data transmission rates for mobile phones and data terminals.

Wi-Fi Hotspot

A place where individuals can connect to the Internet, often through Wi-Fi, by using a wireless local area network (WLAN) which is linked to an Internet service provider via a router.