Which One of the Following Statements Is False

question 143

Multiple Choice

Which one of the following statements is false?

• A) Most countries that trade with the U.S. do not impose a double tax on dividends.
• B) Tax proposals that include corporate integration would eliminate the double tax on dividends.
• C) The double tax on dividends may make corporations more financially vulnerable during economic downturns.
• D) Many of the arguments in support of the double tax on dividends relate to fairness.
• E) None of the above.

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Definitions:

Par Value

The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the value assigned to a stock for accounting purposes, respectively.

Matures

Refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Par-value

The par value of a bond, share of stock, or coupon as declared by the issuer.

Yield To Maturity

The total return anticipated on a bond if held until it matures, including all interest payments and the repayment of principal.