change in stock price ex-dividend 2011, equation, change, someone, tonight

BC_MBA_student

dividend * (1 - dividend tax rate)
___________________________
(1 - investors marginal tax bracket)



Never seen this equation before tonight. Makes no sense to me. Can someone explain?



Edited 1 time(s). Last edit at Thursday, May 26, 2011 at 10:57PM by mp3bu.