liquidity

Actually it is:

Dividend*(1- Td)/(1-Tcg)

where,

Td= dividend tax rate

Tcg= capital gains tax rate


It lies in the corporate finance volume in the dividends vs. repurchases topic.

With this type you can find:

1) the ex-dividend price (depending on the relationship between td and tcg)

2) whether a unit of dividend is worth more than a unit of capital gain.



Edited 1 time(s). Last edit at Friday, May 27, 2011 at 03:18AM by perimel.