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You are a consultant that has been hired to recommend a payout policy for UBT Corp. UBT's shareholders are almost all buy and hold individual
You are a consultant that has been hired to recommend a payout policy for UBT Corp. UBT's shareholders are almost all buy and hold individual investors as well as one-year individual investors. No shareholder of UBT owns more than 20% of all outstanding shares. You have compiled a table with the current tax rates that different types of investors might face (see below). With the information provided, how would you recommend that UBT structure its payout policy? Assume that taxes are the only market imperfection.Select the best answer.
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