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When a firm retains cash, it pays corporate tax on the interest it earns and the investor will owe capital gains tax on the increased
When a firm retains cash, it pays corporate tax on the interest it earns and the investor will owe capital gains tax on the increased firm value in essence the interest on retained cash is taxed OA. at a rate of zero B. once C. twice D. none of the above
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
2nd Edition
0471111864, 978-0471111863
