Slate is like most investors. His portfolio consists of some bonds and some stocks. According to Slate,
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Slate is like most investors. His portfolio consists of some bonds and some stocks. According to Slate, assuming he has invested the same amount in a bond and a stock, a $100 dividend spends the same as $100 of interest. In other words, $100 of interest from a bond issued by General Motors is the same as a payment of a $100 dividend on stock issued by General Motors. Slate’s analysis, while simple, is correct.
(True / False)
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