CFA Practice Question

There are 131 practice questions for this study session.

CFA Practice Question

Which of the following assumptions is necessary for dividend irrelevance?

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.
Correct Answer: B

Zero transactions costs and no taxes are necessary for dividend irrelevance.

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