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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
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

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.