Despite some theoretical assertions, many investors do care a great deal about dividends. They believe that sure dividends today (a bird in the hand) are less risky than a return in the form of capital gains in the future. The following table lists some factors that might affect an investor’s preference for dividends. Indicate whether the given factors are likely to make an investor prefer to receive more or fewer dividends for each statement. When an investor dies, his or her heirs are not liable for taxes on the capital gains generated during the investor’s life. They are only liable for the capital gains earned since the investor’s death. Risk-averse investors prefer to minimize uncertainty with their expectations of income from their investment. Investors expect a reliable annual cash flow from their stock portfolios.
Despite some theoretical assertions, many investors do care a great deal about dividends. They believe that sure dividends today (a bird in the hand) are less risky than a return in the form of capital gains in the future. The following table lists some factors that might affect an investor’s preference for dividends. Indicate whether the given factors are likely to make an investor prefer to receive more or fewer dividends for each statement. When an investor dies, his or her heirs are not liable for taxes on the capital gains generated during the investor’s life. They are only liable for the capital gains earned since the investor’s death. Risk-averse investors prefer to minimize uncertainty with their expectations of income from their investment. Investors expect a reliable annual cash flow from their stock portfolios.
Despite some theoretical assertions, many investors do care a great deal about dividends. They believe that sure dividends today (a bird in the hand) are less risky than a return in the form of capital gains in the future. The following table lists some factors that might affect an investor’s preference for dividends. Indicate whether the given factors are likely to make an investor prefer to receive more or fewer dividends for each statement. When an investor dies, his or her heirs are not liable for taxes on the capital gains generated during the investor’s life. They are only liable for the capital gains earned since the investor’s death. Risk-averse investors prefer to minimize uncertainty with their expectations of income from their investment. Investors expect a reliable annual cash flow from their stock portfolios.
Despite some theoretical assertions, many investors do care a great deal about dividends. They believe that sure dividends today (a bird in the hand) are less risky than a return in the form of capital gains in the future.
The following table lists some factors that might affect an investor’s preference for dividends. Indicate whether the given factors are likely to make an investor prefer to receive more or fewer dividends for each statement.
When an investor dies, his or her heirs are not liable for taxes on the capital gains generated during the investor’s life. They are only liable for the capital gains earned since the investor’s death.
Risk-averse investors prefer to minimize uncertainty with their expectations of income from their investment.
Investors expect a reliable annual cash flow from their stock portfolios.
Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.
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