Quiz Ch 14 – T/F Tax Rate Differential and Potential Impact on Dividend Payout Ratios

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: When considering an escalation in the tax rate on dividends compared to that on capital gains, it is logical to expect an increase in dividend payout ratios, assuming other factors remain unchanged.

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  • Search Terms: a. b. false true an and at capital constant, different dividend dividends federal gains government held in increase lead logically on other payout rate rates. ratios. relative sometimes tax taxes that the things to would
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