Assume that the tax on dividends and the tax on capital gains is the same. All else equal, what
would a prudent investor prefer?
A) The prudent investor would prefer dividendsNa dollar today is always worth more than a
dollar to be received in the future.
B) The prudent investor would prefer capital gainsNthe capital gain tax liability can be deferred
until gains are realized.
C) The prudent investor would be indifferent between receiving dividends or capital gains.
D) More information is needed.
B
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A corporation sold a fixed asset for $100,000. This is ________
A) an investment cash flow and a source of funds B) an operating cash flow and a source of funds C) an operating cash flow and a use of funds D) an investment cash flow and a use of funds
What should we do if there is more than one primary actor for the use case?
What will be an ideal response?