Que Corporation pays a regular dividend of $1 per share. Typically, the stock price drops by $0.84

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Que Corporation pays a regular dividend of $1 per share. Typically, the stock price drops by $0.84 per share when the stock goes ex-dividend. Suppose the capital gains tax rate is 18%, but investors pay different tax rates on dividends. Absent transactions costs, what is the highest dividend tax rate of an investor who could gain from trading to capture the dividend?

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Related Book For  answer-question

Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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