Which of the Following Statements Is False

question 64

Multiple Choice

Which of the following statements is false?

• A) Tax rates vary by income, by jurisdiction, and by whether the stock is held in a retirement account. Because of these differences, firms may attract different groups of investors depending on their dividend policy.
• B) While many investors have a tax preference for share repurchases rather than dividends, the strength of that preference depends on the difference between the dividend tax rate and the capital gains tax rate that they face.
• C) Long-term investors are more heavily taxed on capital gains, so they would prefer dividend payments to share repurchases.
• D) One-year investors, pension funds, and other non-taxed investors have no tax preference for share repurchases over dividends; they would prefer a payout policy that most closely matches their cash needs.

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Definitions:

Display Rule

Socially constructed norms that dictate the appropriate emotional expressions in various social situations.

Mood

A temporary state of mind or feeling that can influence an individual's behavior and perception of the world around them.

Emotional Intelligence

The ability to understand, manage, and articulate one’s feelings, as well as to conduct relationships with others in a careful and empathetic manner.

Regulation of Emotions

Involves monitoring, evaluating, and modifying emotional reactions to achieve one's goals.