If taxes on dividend income and capital gains income were a major determinant of dividend payout ratio policies,then under the classical tax system we would expect:

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Under the classical tax system, dividend income is taxed at the investor's marginal tax rate, which can make dividends less attractive to investors in high tax brackets. However, tax-exempt investors, such as superannuation funds, would not be affected by this and thus might prefer investing in companies with high dividend payout ratios since they don't incur additional taxes on the dividends received.

If Taxes on Dividend Income and Capital Gains Income Were