A Scenario Exists That Supports an Argument in Favor of a Low

question 47

Multiple Choice

A scenario exists that supports an argument in favor of a low dividend policy when:

• A)tax laws allow capital gains to be deferred until the gain is realized.
• B)few,if any,positive net present value projects are available to a firm.
• C)a preponderance of stockholders have minimal taxable income.
• D)the majority of the stockholders 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:

Highly Incongruent

Refers to situations or stimuli that are vastly inconsistent or contrasting with expected norms or patterns.

Super-Ego

In psychoanalytic theory, the part of the personality that acts as a moral center, guiding behavior according to learned societal standards.

Psychosexual Stages

A theory by Freud describing how personality develops through five stages from infancy to adulthood, centered on sexual pleasure.

Response Tendencies

The likelihood of a person to react in a specific manner when presented with a particular stimulus.