If consolidated power is priced at 50 with dividend and its


If Consolidated Power is priced at $50 with dividend, and its price falls to $46.50 when a dividend of $5 is paid, what is the implied marginal rate of personal taxes for its stockholders? Assume that the tax on capital gains for the marginal investor in the firm’s equity is 28%.

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Financial Management: If consolidated power is priced at 50 with dividend and its
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