1. What role do corporate dividends play in comparing the relative tax positions of investors in corporations versus partnerships? 2. Explain the phrase “corporations are subject to double taxation.”...

1. What role do corporate dividends play in comparing the relative tax positions of investors in corporations versus partnerships?

2. Explain the phrase “corporations are subject to double taxation.” Is this true for all corporate forms? Explain the phrase “taxed as a pass-through entity.”

 3. What are the major variables that affect the magnitude of the shareholder-level tax, ts? Give examples to illustrate the importance of each variable. Is it possible to rank the importance of each variable?

4. What are the major variables that affect the magnitude of the required after-corporate-tax—but before shareholder-level-tax—rate of return r*c? Give examples to illustrate the importance of each variable. Is it possible to rank the importance of each variable?