dividend and will not Equity $ 950,000 $950,000 $ 0 0 950,000 $950,000 end. If the company changed at $11, but, the same amount as Hividends received. he price drop on the of the investor had to d by a high-payout paying the broker. with a 5% discount, ative trading cost." pating in the DRIP. in the DRIP. required (after-tax) ant that previously this tax saving is 4. The pretax rate e after-tax rate of The company had tradi- see that such rates tionally paid out about 40% of earnings as dividends, though the figure in 2021 was only 35%. Penn was spending more than $4 billion a year on R&D, but the strong operating cash flow and conservative dividend policy had resulted in a buildup of cash. Penn's recent income statements, balance sheets, and cash-flow statements are summarized in Tables 17.3, 17.4, and 17.5. wine, "but I like the idea of buying back our stock. We can tell shareholders that we are so confident about the future that we believe buying our own stock is the best investment we can make." He scribb