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(b) Iron Corporation pays a regular dividend of $1.6 per share. Typically, the stock price drops by $1.2 per share when the stock goes ex-dividend.

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(b) Iron Corporation pays a regular dividend of $1.6 per share. Typically, the stock price drops by $1.2 per share when the stock goes ex-dividend. Suppose the capital gains tax rate is 21%, but investors pay different tax rates on dividends. Absent transactions costs, if an investor would like to gain from the dividend capture strategy, in what range does the dividend tax rate need to be

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