Quiz Ch 14 – T/F Tax Rate Variation’s Impact on Stock Preferences Based on Income

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: Given a scenario where the tax rate on dividends is notably higher than that on capital gains, it can be inferred that individuals with lower taxable incomes would likely lean towards stocks featuring low payouts, while high-income individuals would tend to favor companies with higher payouts.

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