Problem
In 2003, the taxes on dividends from stocks were reduced and brought into line with the tax treatment of capital gains. Other things being constant, what is the expected effect of a dividend tax reduction on stock prices? Explain. What other changes might be expected as the result of the more favorable tax treatment of dividends?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.