- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 18. Analysis of Dividends and Share Repurchases
- Subject 4. Factors Affecting Dividend Policy
CFA Practice Question
German shareholders in low tax brackets would prefer a ______ dividend payout.
B. lower
C. they don't care as their effective tax rate would be the same as those in higher tax brackets.
A. higher
B. lower
C. they don't care as their effective tax rate would be the same as those in higher tax brackets.
Correct Answer: A
In Germany dividends are taxed at a lower rate than capital gains.
User Contributed Comments 1
| User | Comment |
|---|---|
| assistent | it used to be like this, but has changed! tax is 25% + 5,5% = 26,38% |