Author Question: Assume that the tax on dividends and the tax on capital gains is the same. All else equal, what ... (Read 23 times)

ereecah · **on:** Jul 10, 2018

Assume that the tax on dividends and the tax on capital gains is the same. All else equal, what
would a prudent investor prefer?

A) The prudent investor would prefer dividendsNa dollar today is always worth more than a
dollar to be received in the future.
B) The prudent investor would prefer capital gainsNthe capital gain tax liability can be deferred
until gains are realized.
C) The prudent investor would be indifferent between receiving dividends or capital gains.
D) More information is needed.

Question 2

Zero balance accounts permit centralized control over cash outflows while maintaining divisional
disbursing authority.

Indicate whether the statement is true or false

lgoldst9 · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

B

Answer to Question 2

TRUE

Author Question: Assume that the tax on dividends and the tax on capital gains is the same. All else equal, what ... (Read 23 times)

ereecah

Assume that the tax on dividends and the tax on capital gains is the same. All else equal, what ...

lgoldst9

Assume that the tax on dividends and the tax on capital gains is the same. All else equal, what ...

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