Based on the Concept of the Clientele Effect,which One of These

question 86

Multiple Choice

Based on the concept of the clientele effect,which one of these combinations correctly aligns an investor group with its preferred type of stocks?

• A)Low-tax-bracket individuals; zero-to-low payout stocks
• B)High-tax-bracket individuals; low-to-medium payout stocks
• C)Corporations; low-to-medium payout stocks
• D)Tax-free institutions; medium-payout stocks
• E)High-tax-bracket individuals; high-payout stocks

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Definitions:

Mortgage Payable

A long-term liability account that records the amount owed on a property mortgage.

Current Assets

Items on a company's balance sheet anticipated to be cashed in, sold off, or utilized within the longer span of either one year or its operational cycle.

Current Liabilities

Obligations or debts that a company expects to settle within one year or within the normal operating cycle of the business.

Liquidity

The ease with which an asset, or security, can be converted into ready cash without affecting its market price.