A Scenario Exists That Supports an Argument in Favor of a Low

Multiple Choice

A scenario exists that supports an argument in favor of a low dividend policy when:

A) tax laws allow capital gains to be deferred until the gain is realized.
B) few,if any,positive net present value projects are available to a firm.
C) a preponderance of stockholders have minimal taxable income.
D) the majority of the stockholders have other investment opportunities that offer higher rewards with similar risk characteristics.
E) corporate tax rates exceed personal tax rates.