What Is Not an Argument Favoring High Dividend Payouts

question 29

Multiple Choice

What is not an argument favoring high dividend payouts?

• A) The tax rate on dividends is higher than that of capital gains.
• B) Dividends meet the desire for current income.
• C) Dividends resolve uncertainty.
• D) It is possible to eliminate the tax disadvantage to dividends through tax arbitrage.

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Definitions:

Schizophrenia

A disorder of the psyche that manifests as irregularities in conceptual processes, sensation interpretation, affective reactions, and social rapport.

Catatonic

A behavioral syndrome marked by an inability to move normally, often associated with schizophrenia.

Acute

Describes conditions, diseases, or symptoms that are severe and sudden in onset but typically short-lived.

Process

A series of actions or steps taken in order to achieve a particular end.