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If Dividends Are Taxed More Heavily Than Capital Gains, the Investors

Question 40

Multiple Choice

If dividends are taxed more heavily than capital gains, the investors:


A) Should be willing to pay more for stocks with low dividend yields
B) Should be willing to pay more for high dividend yields
C) Should be willing to pay the same for stocks regardless of the dividend yields
D) Cannot be predicted as stock prices fluctuate randomly

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