Current tax laws have which of the following effects? Answers: a. Favor capital gains because the tax docs not have to be paid until the stock is sold. b. Favor dividends because there are no capital gains taxes on dividends. c. Favor dividends since dividends are tax-deductible for the paying corporation whereas retained earnings, which produce capital gains, are not tax-deductible. d. Do not favor dividends or capital gains for most people because different people are in different tax brackets. e. Do not favor capital gains because the tax must be paid as the value of the stock increases, whether or not the stock is sold.

must choose only 1