Question: Evaluate the following statement: When dividends and long-term capital gains are taxed at the same rate, the overall tax rate on corporate income is the

Evaluate the following statement: "When dividends and long-term capital gains are taxed at the same rate, the overall tax rate on corporate income is the same whether the corporation distributes its after-tax earnings as a dividend or whether it reinvests the after-tax earnings to increase the value of the corporation."

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