Concerning the taxation of dividends and capital gains

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Which one of the following statements is correct concerning the taxation of dividends and capital gains?

Seventy percent of capital gains derived from stock investments are tax exempt for corporate investors.

Dividends are a form of tax-exempt income for individual investors.

All investors are subject to the same tax rate on dividend income. Individual investors can defer taxation on both dividends and capital gains.

As of 2003, individual investors pay a 15 percent tax on both dividends and capital gains.

Reference no: EM131065223

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