Que Corporation pays a regular dividend of $1 per share. Typically, the stock price drops by $0.80
Question:
Que Corporation pays a regular dividend of $1 per share. Typically, the stock price drops by
$0.80 per share when the stock goes ex-dividend. Suppose the capital gains tax rate is 20%, but investors pay different tax rates on dividends. Absent transactions costs, what is the highest dividend tax rate of an investor who could gain from trading to capture the dividend?
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