Question 1: Dividends are taxed at a lower rate than capital gains. This suggests that...

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Accounting

Question 1: Dividends are taxed at a lower rate than capital gains. This suggests that companies should have high dividend-payout ratios. Discuss this statement, giving special attention to its appropriateness in the Australian tax environment.

Question 2: Some companies have investment opportunities well in excess of the earnings available to finance them but they still insist on paying dividends. Why?

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