Which of the following is NOT a result of the double taxation of dividends?
A) Because profits that firms distribute to stockholders are taxed a second time, firms have an incentive
to retain profits rather than to distribute them to stockholders.
B) The return investors receive from buying stocks is reduced, which reduces the incentive people have to save in the form of stock investments and increases the costs to firms of raising funds.
C) It gives firms an incentive to take on what may be an excessive level of debt rather than issue stock.
D) The decline in retained profits results in increased inefficiency.
D
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The short-run supply curve of a perfectly competitive firm
a. intersects the minimum point of its short-run average total cost curve but not its short-run average variable cost curve. b. intersects the minimum point of its short-run average variable cost curve but not its short-run average total cost curve. c. intersects the minimum point of both its short-run average variable cost and its short-run average total cost curves. d. intersects the minimum point of its short-run average total cost curve and may or may not intersect the minimum point of its short-run average variable cost curve.
A decrease in the level of capital inside a nation would cause the:
A. long-run aggregate supply curve to shift to the right. B. long-run aggregate supply curve to shift to the left. C. short-run aggregate supply curve to shift to the right. D. aggregate demand curve to shift to the right.