A scenario exists that supports an argument in favor of a low dividend policy when:
A) tax laws allow capital gains to be deferred until the gain is realized.
B) few, if any, positive net present value projects are available to a firm.
C) a preponderance of stockholders have minimal taxable income.
D) the majority of the stockholders have other investment opportunities that offer higher rewards with similar risk characteristics.
E) corporate tax rates exceed personal tax rates.
A) tax laws allow capital gains to be deferred until the gain is realized.
You might also like to view...
Arguments for trade restrictions include all but
A. punishment of offending nations. B. fair competition and retaliation. C. sovereignty rights. D. national defense, infant industry, and job protection.
When writing a cover letter using the AIDA plan, what type of information should be included in the interest/desire section?
A) What interests you most about the position B) How much you want to work for the organization C) Skills and abilities that support the goals of the company D) A request for an interview E) What job you are applying for
The capital expenditures budget is part of the planned investing activities of a company
Indicate whether the statement is true or false
Why are the capabilities needed to build a sustainable competitive advantage so important to a winning business strategy? Cite one of the company examples in the chapter to illustrate your answer.
What will be an ideal response?