Assuming current tax rates ( Corp.tax 35%, Individual 39.6, Dividends and Capital gain 20%), identify the following as either true or false.Explain each answer.

a. The annualized after-tax rate of return to investing in the corporate form increases with the length of the investors holding period

b. The annualized after-tax rate of return to investing in the partnership form increases with the length of the partners holding period

c. If a corporation paid out its entire after-tax profits as dividends each year, shareholders would realize a lower after tax rate of return than if the corporation retained the after tax profits

d. Because the corporate rate is lower than the individual rate, the corporate form is preferred to the partnership form

e. Because corporate income is subject to two levels of tax, the partnership form is always preferred to the corporate form