You purchased CSH stock for

$33

and it is now selling for

$45.

The company has announced that it plans a

$12

special dividend.

a. Assuming 2010 tax rates of

15%

on dividends and capital gains, if you sell the stock or wait and receive the dividend, will you have different after-tax income?

b. Assuming the capital gains tax rate is

16%

and the dividend tax rate is

42%,

if you sell the stock or wait and receive the dividend, will you have different after-tax income? If the after-tax income is different, why?

You purchased CSH stock for $33 and it is now selling for $45. The company has announced that it plans a $12 special dividend. a. Assuming 2010 tax rates of 15% on dividends and capital gains, if you sell the stock or wait and receive the dividend, will you have different after-tax income? b. Assuming the capital gains tax rate is 16% and the dividend tax rate is 42%, if you sell the stock or wait and receive the dividend, will you have different after-tax income? If the after-tax income is different, why? You purchased CSH stock for $33 and it is now selling for $45. The company has announced that it plans a $12 special dividend. a. Assuming 2010 tax rates of 15% on dividends and capital gains, if you sell the stock or wait and receive the dividend, will you have different after-tax income? b. Assuming the capital gains tax rate is 16% and the dividend tax rate is 42%, if you sell the stock or wait and receive the dividend, will you have different after-tax income? If the after-tax income is different, why