Use the Following Information to Answer the Question(s)below

question 7

Multiple Choice

Use the following information to answer the question(s) below.
-In which years were dividends tax disadvantaged?

• A)1987 - 2002
• B)1987,1993 - 2002
• C)1987,1991 - 2002
• D)1988 - 1990,2003 - 2009

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Definitions:

Stock Dividend

A form of dividend payment made in shares rather than cash, which increases the number of shares held by each shareholder.

Retained Earnings

The portion of a company's accumulated net income that is not distributed to shareholders as dividends but is kept as reserves for reinvestment in the business operations.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Fair Value

An estimate of the price at which an asset could be bought or sold in a current transaction between willing parties, not in a forced or liquidation sale.