Which One of the Following Is an Argument in Favor

question 79

Multiple Choice

Which one of the following is an argument in favor of a low dividend policy?

• A)the tax on capital gains is deferred until the gain is realized
• B)few, if any, positive net present value projects are available to the firm
• C)a preponderance of stockholders have minimal taxable income
• D)a majority of stockholders have other investment opportunities that offer higher rewards with similar risk characteristics
• E)corporate tax rates exceed personal tax rates

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