During the late 1960s, the top marginal personal income tax rate on dividends, received by British investors,

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During the late 1960s, the top marginal personal income tax rate on dividends, received by British investors, reached 98 percent, yet dividend pay-outs actually increased. How can you justify this empirical fact?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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