Concept explainers
Use the following information to answer the next two questions:
Historically, the U.S. tax code treated dividend payments made to shareholders as ordinary income. Thus, dividends were taxed at the investor’s marginal tax rate, which was as high as 38.6 percent in 2002.
11. Ex-Dividend Stock Prices How do you think this tax law change affects ex-dividend stock prices?
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CORPORATE FINANCE--CONNECT ACCESS CARD
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