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Because of the Tax Laws of the 1960s and 1970s

Question 109

Multiple Choice

Because of the tax laws of the 1960s and 1970s, when dividends were taxed more heavily than capital gains, shareholders preferred that corporations:


A) pay dividends annually.
B) keep free cash flows for investment in acquisitions.
C) distribute capital gains regularly.
D) increase managerial salaries.

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