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Which of the following is true of the capital structure of a company from a tax standpoint?
In countries where dividends are not taxed, the investors should show a preference for debt.
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In countries where there are no taxes, corporations are inclined to use debt.
In countries where capital gains are taxed, investors should show a preference for stocks.
In countries where capital gains are not taxed, equity capital costs should be high.
In countries where capital gains are not taxed, investors should show a preference for stocks.