Double taxation of corporate profits, first through the corporate tax on profits and later through the personal income tax on dividends, is likely to lead to:
A. additional issues of stock shares, instead of additional issues of bonds.
B. larger capital gains, if the corporations pay dividends.
C. less efficient investments, but more lightly taxed ones.
D. smaller capital inflows into real estate investment.
Answer:C
Double taxation of corporate profits, first through the corporate tax on profits and later through the personal income tax on dividends, is likely to lead to:
A. additional issues of stock shares, instead of additional issues of bonds. B. larger capital gains, if the corporations pay dividends. C. less efficient investments, but more lightly taxed ones. D. smaller capital inflows into real estate investment.