Tax differential theory of dividend policy

Assignment Help Business Management
Reference no: EM131089985

The tax differential theory of dividend policy typically requires that dividend income be taxed at a higher rate than capital gains income. So if the preferential treatment of capital gains that existed before 2003 is eliminated in a tax reform act. (e.g. 20% tax rate on both dividend income and capital gain. The tax differential theory:

1. is no longer valid

2. still holds, except that dividens are not perferred to capital gains

3. still holds, but its impact on dividend policy is reduced.

4. no supports the MW view of divided irrelevance.

Reference no: EM131089985

Philosophy seeks to encourage suggestions

The kaizen philosophy seeks to encourage suggestions, not to find excuses for failing to improve. Typical excuses are "If it's not broken, don't fix it", "I'm too busy to w

How organization aligned hr strategy with organizations-s

Review further pertinent information about company found on site or other informational Web sites. Describe how organization has aligned HR strategy with organization's strate

Solving business questions

You run a clothing shop and employ many salespeople. A friend comes in and asks you a favor. He has selected a $900 suit off the rack and wishes a one-time 50% discount.

Personal and professional opinion about mandatory retirement

Should the law firm eliminate mandatory retirement in order to gain a ‘competitive advantage'? Describe and justify your recommendation. Discuss your own personal and profes

Interaction between components of stress response

Give an example of when this happened to you. Explain the interaction between components of the stress response and your immune system. Choose one or two methods of stress m

Refute spectors claim that engagement to gain commitment

Defend or refute Spector's (2013) claim that mutual engagement to gain commitment to assess employee behavior is a roadmap for identifying key variables that impact organiza

Negative impact on the company bottom

Building on the topic above, determine how diversified the company you research could become before it created a negative impact on the company's bottom line. Explain your r

Determine the percent of failures

A manufacturer of disk drives for notebook computers wants an MTBF of at least 50,000 hours. -Determine the Percent of failures,  Number of failures per unit-hour  and  MTBF

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd