Question
Que Corporation pays a regular dividend of $ 1.00 per share. Typically, the stock price drops by $ 0.87 per share when the stock goes
Que Corporation pays a regular dividend of $1.00 per share. Typically, the stock price drops by $0.87 per share when the stock goes ex-dividend. Suppose the capital gains tax rate is 22 %, 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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Intermediate Accounting 2014 FASB Update
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
15th edition
978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290
