Question
while long-term capital gains are taxed at 15%. Suppose Congress is considering a law that will tax long-term capital gains and dividends at 25%. How
while long-term capital gains are taxed at 15%. Suppose Congress is considering a law that will tax long-term capital gains and dividends at 25%. How will this affect a firms choice of dividend policy? Specifically, a. how will this affect firms that are paying dividends AND firms that are not paying dividends? (5 pts) b. how will this affect investor preferences relative to today?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
