Quiz Ch 17 – Investor Preference for Capital Gains vs. Dividends
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Why might investors favor capital gains over dividends, even if both are taxed at the same rate?
Why might investors favor capital gains over dividends, even if both are taxed at the same rate?
Caterina Chekov, who holds 100 shares of Kappa Corp, is not in need of the extra cash resulting from the dividend increase. How can she balance the change in dividend policy?
When there’s an uptick in share price following a dividend increase, what condition makes this outcome logical?
In what situation have managers been described as hesitant to raise dividends?
Which is NOT considered a market imperfection affecting the choice between dividends and repurchases?
What is MM’s proposition regarding dividends, and how does it predict shareholder behavior in relation to stock prices and dividend payouts?
Which group is most inclined to show a preference for stocks with a high-dividend payout policy?
Which entity receives the most substantial tax advantage when receiving dividends instead of capital gains?
When is it logically expected for the price of a share of stock to decrease in the context of the dividend-payment process?
Ignoring taxes, what is the anticipated price change of a stock on the day it goes ex-dividend?