If a $1.10 dividend causes the share price to drop from $10 to $9.20 on the day

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If a $1.10 dividend causes the share price to drop from $10 to $9.20 on the day the share goes ex-div, and personal taxes on dividends and capital gains are both 40 percent, how long does this imply that investors hold off realising capital gains?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Aug 11, 2020 05:06 AM

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Margin of error = 18.2 cm, standard deviation = 95.2 cm
Margin of error = 0.5 g, standard deviation = 8.7 g
Margin of error = 3.5 ml, standard deviation = 155.2 ml

If a $1.10 dividend causes the share price to drop from $10 to $9.20 on the day

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Calculation of time that investors hold off get capital gains Dividend discounted Capital gain ... View the full answer

Microeconomics An Intuitive Approach with Calculus

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