Suppose Two Equally Risky Shares,Div and Cap,offer the Same Expected

question 68

Essay

Suppose two equally risky shares,Div and Cap,offer the same expected return before tax.Div shares pay a generous dividend but offer low expected capital gains.Cap shares pay low dividends but offer high expected capital gains.Which of the two shares would a pension fund prefer? An individual? A corporation? Explain your answers.

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Definitions:

Selection

Rephrased (from "Selection Statement"): A process in programming that involves choosing between two or more paths in the code based on condition evaluation.

Invocation

The act of calling or invoking a method, function, or procedure in programming.

Keywords

Reserved words in a programming language that have a special meaning and cannot be used as identifiers (variable names, function names, etc.).

Identifiers

Names used in programming languages to identify variables, functions, classes, modules, and other user-defined elements.