Que corporation pays a regular dividend of 100 per share


Question - Que Corporation pays a regular dividend of $1.00 per share. Typically, the stock price drops by $0.82 per share when the stock goes ex-dividend. Suppose the capital gains tax rate is 18 %,but investors pay different tax rates on dividends. Absent transactions costs, what is the highest dividend tax rate of an investor who could gain from trading to capture the dividend?

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Accounting Basics: Que corporation pays a regular dividend of 100 per share
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