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NEW QUESTION: 1
Suppose capital gains are taxed at 28% and realized income is taxed at 40%. The tax preference theory implies that as the dividend pay-out ratio is increased, the stock price:
A. increases.
B. decreases.
C. remains unaffected.
D. increases or decreases.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Since the capital gains tax rate is lower than the realized income tax rate, investors would prefer to defer the realization of this income through the capital gains component. Hence, increasing the payout ratio will make the stock less attractive and depress the price.

NEW QUESTION: 2
Which two statements regarding Scopia XT Executive 240 are correct? (Choose two.)
A. The Scopia XT Executive 240 allows anyone to connect their PC or MAC.
B. The Scopia XT Executive 240 can be upgraded to have an embedded MCU.
C. The Scopia XT Executive 240 must be permanently connected to a PC or MAC located in the room.
D. The Scopia XT Executive 240 cannot be used as a room system.
Answer: B,C

NEW QUESTION: 3

A. Option B
B. Option C
C. Option D
D. Option A
Answer: C