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Basic Question 3 of 10
Which of the following assumptions is necessary for dividend irrelevance?
B. Transactions costs are equal to zero.
C. The corporate tax rate is less than the personal tax rate.
A. The dividend tax rate is greater than the capital gains rate.
B. Transactions costs are equal to zero.
C. The corporate tax rate is less than the personal tax rate.
User Contributed Comments 1
| User | Comment |
|---|---|
| katybo | homemade dividends possible |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe types of information (signals) that dividend initiations, increases, decreases, and omissions may convey;
explain how agency costs may affect a company's payout policy;
CFA® 2025 Level II Curriculum, Volume 3, Module 16.