A higher tax rate would result in dividend payout.

Higher

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Lower

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Constant

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Higher
If tax on dividend is higher, it is better to pay lower dividends and vice versa.

Suggest Corrections

Similar questions

Q. Dividend Payout Ratio is equal to ________.

Q. Statement I: In India, the direct tax rate is uniform for all citizens.

Statement II: In India, a higher indirect tax is charged from wealthy and lower indirect tax from the poor.

Q. Dividend distribution tax is payable by:

Q. In India, dividend distribution tax is paid on:

Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.

Join BYJU'S Learning Program

A higher tax rate would result in dividend payout.

The correct option is A HigherIf tax on dividend is higher, it is better to pay lower dividends and vice versa.

The correct option is A Higher
If tax on dividend is higher, it is better to pay lower dividends and vice versa.