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Since 2003, Dividends Have Been Taxed at the Same Rate

Question 99

Multiple Choice

Since 2003, dividends have been taxed at the same rate as capital gains. As a result,


A) many companies have reduced the percentage of earnings paid out as dividends.
B) many companies have increased the percentage of earnings paid out as dividends.
C) tax rates have had little or no effect on dividend policies.
D) more companies have replaced dividends with stock repurchase plans.

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