Assume that the tax on dividends and the tax on capital gains isthe same. All else equal, what would a prudent investor prefer? A.the prudent investor would prefer capital gains-the capital gaintax liability can be deferred until gains are realized. B. Theprudent investor would be indifferent between receiving dividendsor capital gains. C. The prudent investor would prefer dividends- adollar today is always worth more than a dollar to be received inthe future. D. More information is needed.
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