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Assuming that both dividends and capital gains are taxed, then shareholders in high-tax brackets will choose to invest in firms which a. Pay dividends only

Assuming that both dividends and capital gains are taxed, then shareholders in high-tax brackets will choose to invest in firms which

a. Pay dividends only

b. Pay capital gains only.

c. Pay a combination of dividends and capital gains.

d. Choose to re-invest all their profits in their businesses.

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