A long-term investor in a high marginal tax bracket will normally prefer a dollar of capital gain to a dollar of dividend yield.

Name: A long-term investor in a high marginal tax bracket will normally prefer a dollar of capital gain to a dollar of dividend yield.
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A dollar of capital gain is taxed at a lower rate than a dollar of dividend yield for high marginal tax bracket investors. Therefore, they would prefer capital gains over dividends to minimize their tax liability.

A Long-Term Investor in a High Marginal Tax Bracket Will