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If Dividends Are Taxed More Heavily Than Capital Gains, Then

Question 39

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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