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This question is about leasing in corporate finance. Question 1: Length of Delay in realising Capital Gains: If a $1.10 dividend causes the share price
This question is about leasing in corporate finance.
Question 1: Length of Delay in realising Capital Gains: If a $1.10 dividend causes the share price to drop from $10 to $9.20 on the day the share goes ex-div, and personal taxes on dividends and capital gains are both 40 percent, how long does this imply that investors hold off realising capital gains? (the appropriate discount rate is 10 percent)Step by Step Solution
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