Which if the dividend policies would john most likely prefer

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Problem 1: John is in a high income-tax bracket and wishes to minimize current taxes payable. He also has a sizeable current income and prefers high growth rates to significant annual cash flow from his equity investments. Which if the following dividend policies would John most likely prefer if we assume that the dividend policy has no impact on the value of the firm and that the capital gains tax rate is lower than the ordinary tax rate?

A- High dividend payout policy
B- No-dividend payout policy
C- Low dividend -payout policy
D- John would be indifferent to all of the dividend policies 

Reference no: EM132965064

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