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  3. Study Set
    Principles of Managerial Finance
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    Exam 14: Payout Policy
  5. Question
    Because Dividends Are Taxed at the Same Rate as Capital
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Because Dividends Are Taxed at the Same Rate as Capital

Question 85

Question 85

True/False

Because dividends are taxed at the same rate as capital gains under the 2003 Tax Act, a firm's strategy of paying low or no dividends primarily offers tax advantages to wealthy stockholders through tax deferral.

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