A firm has a choice of distributing $50,000,000 as either dividends or as a repurchase. Suppose dividends

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A firm has a choice of distributing $50,000,000 as either dividends or as a repurchase. Suppose dividends are taxed at a 50% rate and capital gains at a 20% rate.

What total taxes would shareholders pay if there is a dividend distribution?

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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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Posted Date: Apr 26, 2023 05:22 AM

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A firm has a choice of distributing $50,000,000 as either dividends or as a repurchase. Suppose dividends

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If the firm distributes the 50000000 as dividends shareholders would need to pay ... View the full answer

Macroeconomics

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