Is there a mistake on the solution for this question? It is asking you,
- An investor is evaluating various assets and strategies for her portfolio. Based solely on tax effects, determine which of the following investments would most likely be favored in a Heavy Interest Tax Regime. A. Growth stocks with high turnover. B. Bonds with periodic payment of interest. C. Value stocks held for a long period of time.
The answer is C, but i picked A because growth stocks tend to pay lower dividends so wouldn’t that be better during a heavy interest tax regime?