Ignoring capital gains as an alternative,the tax law changes in 2003 tend to favor a:

Question

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The tax law changes in 2003 reduced the tax rate for qualified dividends, making them taxed at the same rate as long-term capital gains. This created an incentive for companies to increase their dividend payouts, as they would be taxed at a lower rate. Therefore, a higher dividend policy is favored under the tax law changes in 2003.

Ignoring Capital Gains as an Alternative,the Tax Law Changes in 2003