In Canada,if Dividends Are Taxed at a ________ Rate Than

question 26

Multiple Choice

In Canada,if dividends are taxed at a ________ rate than capital gains,shareholders will prefer ________ to ________.

• A) lower; share repurchases; dividends
• B) higher; dividends; share repurchases
• C) higher; share repurchases; dividends
• D) zero; share repurchases; dividends

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Definitions:

IAS 28

An International Accounting Standard governing the accounting for investments in associates and joint ventures.

Equity Method

An accounting technique used to assess the investments in other companies where the investor has significant influence but not full control.

Patent

A form of intellectual property right that grants the patent holder exclusive rights to an invention for a certain time period, preventing others from making, using, selling, or distributing the patented invention without permission.

Significant Influence

A level of control in an investment, usually signifying the ability to participate in financial and operating policy decisions of the investee without having full control.