Dividend clientele and tax-exempt investors

Reference no: EM13963133

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.

Reference no: EM13963133

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