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eduard
3 years ago
5

Which one of the following is an argument in favor of a low dividend policy? Few, if any, positive net present value projects ar

e available to the firm. A preponderance of stockholders have minimal taxable income. Corporate tax rates exceed personal tax rates. The tax on capital gains is deferred until the gain is realized. A majority of stockholders have other investment opportunities that offer higher rewards with similar risk characteristics.
Business
1 answer:
g100num [7]3 years ago
4 0

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

Explanation:

The TAX DIFFERENTIAL VIEW of DIVIDEND POLICY is a notion that states that shareholders generally prefer capital gains fo dividend payouts because capital gains are taxed at a lower rate than dividend payouts.

Therefore they would like to pay less tax on dividends and instead wait until they make a capital gain as the taxes on that are less and are only charged after the gain is realized.

This translates to less dividends being paid by companies that follow this logic therefore the 4th option is correct.

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3 years ago
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3 years ago
The Purchase and sales agreement provides for release of earnest money to the seller after the buyer's property inspection. The
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The broker should refuse to release the earnest money even after the  seller requested the earnest money prior to the property inspection.

<h3>What is earnest money?</h3>

Earnest money refers to the deposit paid by a buyer to a seller, reflecting the good faith of a buyer in purchasing a home.

It is the money paid to a merchant or seller to complete a contract or money paid to a merchant / seller to show good faith in the transaction.

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Learn more about earnest money here : brainly.com/question/14342438

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