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ue Corporation pays a regular dividend of $1 per share. Typically, the stock rice drops by $.80 per share when the stock goes ex-dividend. Suppose

ue Corporation pays a regular dividend of $1 per share. Typically, the stock rice drops by $.80 per share when the stock goes ex-dividend. Suppose the capital gains tax rate is 20%, 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? Show all work

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