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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