Which of the Following Statements Is FALSE

question 30

Multiple Choice

Which of the following statements is FALSE?

• A)Individuals in the highest tax brackets have a preference for stocks that pay high dividends,whereas tax-free investors and corporations have a preference for stocks with no or low dividends.
• B)To compare investor preferences,we must quantify the combined effects of dividend and capital gains taxes to determine an effective dividend tax rate for an investor.
• C)The dividend-capture theory states that absent transaction costs,investors can trade shares at the time of the dividend so that non-taxed investors receive the dividend.
• D)Differences in tax preferences create clientele effects,in which the dividend policy of a firm is optimized for the tax preference of its investor clientele.

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Definitions:

Outplacement Services

Support services provided by companies to help terminated employees transition to new jobs, including resume writing and interview training.

Terminated Employees

Individuals whose employment contracts have been ended by their employers due to various reasons such as layoffs, misconduct, or organizational changes.

Yield Ratios

A metric used in human resources to evaluate the effectiveness of the recruitment process, comparing the number of candidates at various stages of the process to the number of hires.

Recruitment Sources

Various platforms and methods used by organizations to attract and identify potential candidates for employment.