You find that you are the only investor in a particular stock who is subject to a

Question:

You find that you are the only investor in a particular stock who is subject to a 15 percent tax rate on dividends (all other investors are subject to a 5 percent tax rate on dividends). Is there greater value to you in holding the stock beyond the ex-dividend date or selling the stock and then repurchasing it on or after the ex-dividend date? Assume that the stock is currently selling for $10.00 per share and the will be $0.25 per share.

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...