What aspects of U.S. tax laws tend to (a) Encourage (b) Discourage large dividend payments by corporations?

Question:

What aspects of U.S. tax laws tend to

(a) Encourage

(b) Discourage large dividend payments by corporations? Explain how.


Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

Question Posted: