Suppose That the Pre-Tax Holding Period Returns on Two Shares

Suppose that the pre-tax holding period returns on two shares are the same. Share A has a high dividend payout policy and share B has a low dividend payout policy. If you are a high tax rate individual and do not intend to sell the shares during the holding period, ________.

A) Share A will have a higher after-tax holding period return than Share B
B) the after-tax holding period returns on Shares A and B will be the same
C) Share B will have a higher after-tax holding period return than Share A
D) it is impossible to determine which share will have a higher after-tax holding period return given the information available