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Dividend Clientele and Tax-Exempt Investors

Pension funds are exempt from paying taxes on either ordinary income or capital gains and  also  have  substantial  ongoing  cash  flow needs. What  types  of  stocks  would  you expect these funds to buy?

a. Stocks that pay high dividends

b. Stocks that pay no or low dividends Explain.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91631154

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