Corporations may have a legitimate preference for dividends


Corporations may have a legitimate preference for dividends over capital gains because:

Capital gains have a 50% tax rate. dividends received by corporations are not taxable. 30% of dividends received by corporations are exempt from taxation. 70% of dividends received by corporations are exempt from taxation.

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Accounting Basics: Corporations may have a legitimate preference for dividends
Reference No:- TGS02592427

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