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. Assume that the tax on dividends and the tax on capital gains is the same. All else equal, what would a prudent investor prefer? (Points : 1)
– The prudent investor would be indifferent between receiving dividends or capital gains.
– The prudent investor would prefer dividendsa dollar today is always worth more than a dollar to be received in the future.
– The prudent investor would prefer capital gainsthe capital gain tax liability can be deferred until gains are realized.
– More information is needed.
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