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Do you agree with the statement The U.S. Tax Code encourages companies to pay a large percentage of their net income in the form of

  1. Do you agree with the statement "The U.S. Tax Code encourages companies to pay a large percentage of their net income in the form of dividends? Why?
  2. Why do you think investors invest in stocks that pay no dividend? Support your reasoning with a specific example of a firm that pays no dividend.

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