All else equal,an individual investor would prefer ________ even if rates on both are equal,since ________ can be deferred.
A)dividends to capital gains; dividends
B)dividends to capital gains; capital gains
C)capital gains to dividends; capital gains
D)Investors are indifferent to capital gains vs dividends.

Question

Quizplus · Accepted Answer

Capital gains are preferred to dividends because taxes on capital gains can be deferred until the investment is sold, potentially allowing for more control over the timing of tax liabilities.

All Else Equal,an Individual Investor Would Prefer ________ Even If