If Dividends Are Taxed More Heavily Than Capital Gains, Then

question 41

Multiple Choice

If dividends are taxed more heavily than capital gains, then investors

• A)should be willing to pay more for stocks with low dividend yields.
• B)should be willing to pay more for stocks with high dividend yields.
• C)should be willing to pay the same for stocks regardless of their dividend yields.
• D)should be willing to pay more for stocks having infrequent share repurchases.

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