Suppose that $50\%$ of the dividends received by a corporation are excluded from taxableincome, while all the dividends received by individuals are taxable. All else constant, thisgives an incentive$6$a$.$ to individuals to invest more than corporations in equity $($of other firms$).$ b$.$ to corporations to invest more than individuals in fixed income $($debt$)$ assets. c$.$ to individuals to invest less than corporations in fixed income $($debt$)$ assets. d$.$ to corporations in invest more than individuals in equity $($of other firms$).$ e$.$ This has no impact on anyones incentives.