Why should I choose AnalystNotes?

AnalystNotes specializes in helping candidates pass. Period.

Find out more

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
You need to log in first to add your comment.
Your review questions and global ranking system were so helpful.
Lina

Lina

Learning Outcome Statements

explain factors that affect dividend policy in practice;

calculate and interpret the effective tax rate on a given currency unit of corporate earnings under double taxation, dividend imputation, and split-rate tax systems;

CFA® 2025 Level II Curriculum, Volume 3, Module 16.