Which one of the following tends to decrease the ability of a shareholder to create his or her own homemade dividend policy?
A) Low taxes on capital gains
B) Large holdings of shares
C) Dividend reinvestment plans
D) Low-cost equity purchases
E) High transaction fees

Question

05-07-2021
Business

Answered

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Which one of the following tends to decrease the ability of a shareholder to create his or her own homemade dividend policy?
A) Low taxes on capital gains
B) Large holdings of shares
C) Dividend reinvestment plans
D) Low-cost equity purchases
E) High transaction fees

Sagot :

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andromache andromache · Answer 1 · 2021-07-05T21:02:41-04:00

Answer:

E) High transaction fees

Explanation:

When the transaction fees are high so it reduce the shareholder capability for developing his or her own dividend policy as if less taxes are paid on capital gains, or there is large share holding or there is dividend reinvestment plans, or there is less cost of equity purchase so these all increased the shareholder ability

So, the option e is correct

Which one of the following tends to decrease the ability of a shareholder to create his or her own homemade dividend policy? A) Low taxes on capital gains B) Large holdings of shares C) Dividend reinvestment plans D) Low-cost equity purchases E) High transaction fees

Sagot :

Other Questions

Which one of the following tends to decrease the ability of a shareholder to create his or her own homemade dividend policy?
A) Low taxes on capital gains
B) Large holdings of shares
C) Dividend reinvestment plans
D) Low-cost equity purchases
E) High transaction fees