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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.
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| User | Comment |
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| katybo | homemade dividends possible |
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Learning Outcome Statements
compare theories of dividend policy and explain implications of each for share value given a description of a corporate dividend action;
CFA® 2025 Level II Curriculum, Volume 3, Module 16.