17-1WW. As was mentioned in this chapter, the "Jobs and Growth Tax Relief Reconciliation Act of 2003" included important changes in the tax code that relate to corporate dividend policy and the preference for investors for capital gains income relative to dividend income. Standard &

Poor's provided a very concise, yet useful, three-page summary of these provisions that was provided on the Franklin, Templeton Investments Web site. Visit that site at www, franklintemplcton.com/rctaiJ/jsp_cm/corp/articlcs/common/ma_2003_taxact.jsp. What specific changes contained in the 2003 Tax Act might shift investors' preferences toward cash dividends and what would you forecast the effect would be on dividend payout ratios?