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AAFM Exam CWM_LEVEL_2 Topic 2 Question 58 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 58
Topic #: 2
[All CWM_LEVEL_2 Questions]

Section A (1 Mark)

The________________ deals with the double-edged enigma of why individuals like dividends (in developed country where dividends are taxable) and why this method of income distribution persists in light of quite burdensome double taxation.

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Suggested Answer: C

by Lai at Mar 30, 2023, 11:00 PM

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Salena
1 months ago
The Theory of Limited Arbitrage? That's just too esoteric for this question. We need something more straightforward, like the Dividend Puzzle, which is the financial equivalent of a soap opera plot.
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Amira
4 days ago
Let's go with D) Dividend Puzzle then.
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Lemuel
7 days ago
No, I'm pretty sure it's the Dividend Puzzle.
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Serina
8 days ago
But what about the Equity premium puzzle?
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Frederick
16 days ago
I think the answer is D) Dividend Puzzle.
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Leila
1 months ago
The Equity premium puzzle? Really? That's about the low returns on stocks compared to bonds, not the double taxation of dividends. This question is a real head-scratcher, isn't it?
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Mike
1 months ago
Present-biased preferences? Seriously? That's like trying to solve the Dividend Puzzle with a completely unrelated concept. Nice try, but no.
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Detra
1 months ago
Ah, the Dividend Puzzle, the bane of finance students everywhere! Double taxation and yet companies still insist on paying those pesky dividends.
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Lettie
1 months ago
The Dividend Puzzle is the most relevant option here, as it deals with the puzzling persistence of dividends despite the double taxation.
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Laquanda
17 days ago
That makes sense, it's a tricky concept to understand.
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Laquanda
19 days ago
Yes, the Dividend Puzzle explains why dividends are still popular despite double taxation.
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Laquanda
1 months ago
I think the answer is D) Dividend Puzzle.
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Deandrea
2 months ago
I believe it could also be B) Equity premium puzzle, as that relates to the value of dividends.
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Alyce
2 months ago
I agree with Franklyn, dividends are indeed a puzzle in terms of taxation.
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Franklyn
2 months ago
I think the answer is D) Dividend Puzzle.
upvoted 0 times
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