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Vinvika [58]
2 years ago
7

Which one of the following favors a low dividend policy? A) The tax on capital gains is deferred until the gain is realized. E)

The presence of an agency conflict with the company's senior managers. C) A majority of the shareholders have a low tax rate. D) A majority of the shareholders have better investment opportunities than the firm. B) Few, if any, positive net present value projects are available to a firm.
Business
1 answer:
4vir4ik [10]2 years ago
6 0

Answer: the tax on capital gains is deferred until the gain is realized

Explanation:

A low dividend payout is a situation that occurs when the majority of w company's profit are kept and then reinvested in the business while the rest will be shared as dividends.

A low dividend policy is favored when the tax on capital gains is deferred until the gain is realized.

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Answer

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Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

4 0
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Komok [63]

Answer:

Dr Amortization Expense $3,000

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Preparation of the journal adjusting entry on December 31 to recognize the amortization.

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Cr Patents $3,000

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4 0
2 years ago
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