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Basic Question 1 of 7

German shareholders in low tax brackets would prefer a ______ dividend payout.

A. higher
B. lower
C. they don't care as their effective tax rate would be the same as those in higher tax brackets.

User Contributed Comments 1

User Comment
assistent it used to be like this, but has changed! tax is 25% + 5,5% = 26,38%
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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

compare stable dividend with constant dividend payout ratio, and calculate the dividend under each policy;

describe broad trends in corporate payout policies;

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