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Basic Question 1 of 7

German shareholders in low tax brackets would prefer a ______ dividend payout.

A. higher
B. lower
C. they don't care as their effective tax rate would be the same as those in higher tax brackets.
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User Contributed Comments 1

User Comment
assistent it used to be like this, but has changed! tax is 25% + 5,5% = 26,38%
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

compare stable dividend with constant dividend payout ratio, and calculate the dividend under each policy;

describe broad trends in corporate payout policies;

CFA® 2025 Level II Curriculum, Volume 3, Module 16.