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Basic Question 7 of 7

The federal income tax rules provide another reason for firms to ______ dividend payments.

A. avoid
B. accelerate
C. like
Check Answer Previous Q Print

User Contributed Comments 4

User Comment
ianrh Is this still true?
shawncol why not?
Bevin Capital gains are taxed at 15% and dividends are taxed at individual tax rate.
davidt87 also double taxation
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

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® 2026 Level II Curriculum, Volume 3, Module 16.