bc0e6d7f_ue_Investing__Timeless_Reading__Description
[Title] Dividends and Taxes [Download] Download paper(pdf)divtaxpremium.xls (effect on market)stockvaldiv.xls (effect on individual stocks) [Description] 
In January 2003, President Bush proposed that dividends be tax exempt to investors. While the ultimate shape of the tax reform is not clear, changing the tax rate on dividends can have significant effects on both equity values and on the corporate finance decisions – investment, capital structure and dividend policy- of companies.In this paper, I estimate the effect of making dividends tax exempt on the overall value of equity in the market (13-14%) and argue that there will be profound changes in the use of debt and stock buybacks, with both declining.
Value Investing: Timeless Reading
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