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Chapter 17, Problem 17P

a)

Summary Introduction

To determine: Effective dividend tax rate.

Introduction:

The date between the announcement date and payment date is the ex-dividend date. A stock that trades on the ex-dividend date is termed as stock on ex-dividend. A stock becomes ex-dividend when the person gets the payment of a dividend. When the ex-dividend date starts, the price ultimately falls down.

b)

Summary Introduction

To discuss: The person who determines the M Company’s stock that is marginal investor.

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Chapter 17 Solutions

Corporate Finance Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)

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