Since 2003, Dividends Have Been Taxed at the Same Rate

question 44

Multiple Choice

Since 2003, dividends have been taxed at the same rate as capital gains. As a result,

• A) many companies have reduced the percentage of earnings paid out as dividends.
• B) many companies have increased the percentage of earnings paid out as dividends.
• C) tax rates have had little or no effect on dividend policies.
• D) more companies have replaced dividends with stock repurchase plans.