The Horner Pie Company pays a quarterly dividend of $1. Suppose that the stock price is expected to fall on…
The Horner Pie Company pays a quarterly dividend of $1. Suppose that the stock price is expected to fall on the ex-dividend date by $.90. Would you prefer to buy on the with-dividend date or the ex-dividend date if you were (i) a tax-free investor, (ii) an investor with a marginal tax rate of 40% onincome and 16% on capital gains?
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