After paying a $5 dividend, firm ABC's stock price fell from 63.25 to 59.35 . What is the implied effective tax rate? 20% 22% 25% Question 12 ( 4 points) S Saved An individual investor is subject to a 30 percent tax on dividends and 20 percent tax on capital gains, how much does the investor receive for \$2/share in capital gains? $1.40 $1.50 $1.60 Question 13 (4 points) Saved An individual investor is subject to a 30 percent tax on dividends and 20 percent tax on capital gains, how much does the investor receive for \$4/share in dividends? $2.40 $2.80 $3.20 The indirect costs of bankruptcy include fees to attorney and accountants. True False Question 8 (2 points) Soved Institutional investors may prefer dividends because they are not subject to taxes. True False Question 9 (2 points) Soved Dividends are smooth relative to eamings because lower a dividend sends a bad signal to the market. True False Question 10 (2 points) Yived Due to tax concerns, an increase in the corporate tax rate should lead companies to use more debt not less, holding all else equal. True False