Choose option a,b,c,d,e for the following: Question 4 - Your income is exempt from taxes. Considering this fact, which of the following is true? a. You will always prefer your firm to retain its earning and grow faster so that you can enjoy capital gains. b. You will always choose your stocks bases on whether they offer a high or a low dividend payout. c. You will always go for low dividend – high growth stocks. d. You will want to invest in tax free government bonds. e. You will be indifferent between receiving dividends or capital gains.
Choose option a,b,c,d,e for the following: Question 4 - Your income is exempt from taxes. Considering this fact, which of the following is true? a. You will always prefer your firm to retain its earning and grow faster so that you can enjoy capital gains. b. You will always choose your stocks bases on whether they offer a high or a low dividend payout. c. You will always go for low dividend – high growth stocks. d. You will want to invest in tax free government bonds. e. You will be indifferent between receiving dividends or capital gains.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Choose option a,b,c,d,e for the following:
Question 4 -
Your income is exempt from taxes. Considering this fact, which of the following is true?
a. You will always prefer your firm to
b. You will always choose your stocks bases on whether they offer a high or a low dividend payout.
c. You will always go for low dividend – high growth stocks.
d. You will want to invest in tax free government bonds.
e. You will be indifferent between receiving dividends or capital gains.
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