A firm earns a pretax profit of $20 per share. It pays a corporate tax of $6 per share (30% tax rate) in taxes. The firm pays the remaining amount in dividends to a shareholder in the 30% tax bracket. The company is correctly valued on the Stock exchange and operating under the classical taxation system Multiple Choice This investor should not have a preference This investor should prefer a share repurchase This investor should prefer capital gains This investor should prefer dividends