Show mathematically that, with a tax rate on both dividends and capital gains of 5 percent, it

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Show mathematically that, with a tax rate on both dividends and capital gains of 5 percent, it doesn’t matter whether earnings are paid out as dividends or kept in the firm to cause g to grow for a constant-dividend stock.

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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Question Posted: Sep 23, 2014 10:54 AM

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Show mathematically that, with a tax rate on both dividends and capital gains of 5 percent, it

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Finance Applications and Theory

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