Which One of the Following Would Tend to Favour a Low

question 19

Multiple Choice

Which one of the following would tend to favour a low dividend payout?

• A)high flotation cost for equity issues
• B)higher tax rates on capital gains than on dividend income
• C)endowment fund investors who cannot spend principal
• D)elimination of the tax-deferral on capital gains
• E)investors' desire for a high dividend yield

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Definitions:

Fiedler's Contingency Model

A leadership theory proposing that effective group performance depends on the proper match between a leader's style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.

Least-preferred Co-worker

The least-preferred co-worker is a term from Fiedler's contingency theory, referring to the person a leader has least preferred to work with, used to measure the leader's task or relationship orientation.

Leadership Style

The approach and manner in which a leader directs, motivates, guides, and manages groups of people, influencing how they achieve objectives and shape organizational culture.

Fiedler's Contingency Model

A theory proposing that effective leadership depends on the situational context and the match between the leader’s style and specific situational variables.