Which of the Following Is NOT a Reason for a High-Dividend-Payout

question 89

Multiple Choice

Which of the following is NOT a reason for a high-dividend-payout policy?

• A)Convenient and direct deposit of cash dividend
• B)Avoidance of transaction costs for selling shares
• C)Higher potential future returns for shareholders
• D)Cash payments today versus uncertain cash payments tomorrow

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Definitions:

Secondary Voltage

The output voltage of a transformer or another type of electrical machine, which is induced by the primary voltage.

Primary

In electrical systems, the initial or main input side of a transformer or circuit.

Center Tapped

A feature in transformers or electrical wires that allows for the creation of a neutral point by tapping into the middle of the windings or conductor.

Neutral Conductor

The grounded conductor of a power system. It is connected to ground potential and is considered a current-carrying conductor. The neutral is generally white or gray in color.