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
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.