(Continue 2). The corporation can pay a $100 dividend and the investor can earn 0.10 (after tax)...
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(Continue 2). The corporation can pay a $100 dividend and the investor can earn 0.10 (after tax) on the investment for one year.
Alternatively, the firm can retain the $100, earn 0.12 for one year and then pay a dividend (investment plus earnings).
What is the investor’s preference?
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Related Book For
Bare Essentials Of Investing The Teaching The Horse To Talk
ISBN: 9789812705402
1st Edition
Authors: Harold Bierman
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