Explain the likely effects on dividend-payout ratios of each of the following: a) The imputation tax system
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Question:
Explain the likely effects on dividend-payout ratios of each of the following:
a) The imputation tax system is modified to allow investors only partial (50 per cent) credit for company tax
paid.
b) Personal income (but not capital gains) tax rates are increased.
c) Capital gains tax is abolished.
d) Interest rates increase substantially.
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