Oh my. I wanted to give a real-world, hands-on question about estimating a corporate growth rate...
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Oh my. I wanted to give a real-world, hands-on question about estimating a corporate growth rate using its required rate of return, next dividend, and current stock price. But neither Meta (formerly known as Facebook) nor Alphabet (the parent name of Google) pays dividends. So I give up. Instead, I'll ask the tax motivation for not paying dividends. How are dividends treated for corporation taxation, and how are dividends treated for individual (personal) taxation? Oh my. I wanted to give a real-world, hands-on question about estimating a corporate growth rate using its required rate of return, next dividend, and current stock price. But neither Meta (formerly known as Facebook) nor Alphabet (the parent name of Google) pays dividends. So I give up. Instead, I'll ask the tax motivation for not paying dividends. How are dividends treated for corporation taxation, and how are dividends treated for individual (personal) taxation?
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Answer rating: 100% (QA)
Dividends are taxed at a lower rate than other types of income which applies to both individuals and businesses Corporation dividends are subject to a 15 tax rate whereas all other types of income are ... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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