Which of the Following Statements Is FALSE

question 7

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:

Public Compliance

Involves outwardly conforming to the norms or behaviors of a group while privately maintaining personal dissent or disagreement.

Central Route

A method of persuasion that involves deeply processing the content of a message, often leading to lasting attitude change.

Peripheral Route

A pathway of persuasion that involves passive processing of information, often based on context or superficial cues rather than the content of the message itself.

Speed Of Speech

Refers to the rate at which a person talks, often measured in words per minute.