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Corporations May Have a Legitimate Preference for Dividends Over Capital

Question 39

Multiple Choice

Corporations may have a legitimate preference for dividends over capital gains because:


A) capital gains have a 50% tax rate.
B) dividends received by corporations are not taxable.
C) 30% of dividends received by corporations are exempt from taxation.
D) 70% of dividends received by corporations are exempt from taxation.

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