AAFM Exam CWM_LEVEL_2 Topic 2 Question 58 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 58
Topic #: 2

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.

ATheory of Limited Arbitrage

BEquity premium puzzle

CPresent-biased preferences

DDividend Puzzle

Show Suggested Answer

Suggested Answer: C

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

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Deandrea

8 days ago

I believe it could also be B) Equity premium puzzle, as that relates to the value of dividends.

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Alyce

10 days ago

I agree with Franklyn, dividends are indeed a puzzle in terms of taxation.

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Franklyn

12 days ago

I think the answer is D) Dividend Puzzle.

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