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

Question

Quizplus · Accepted Answer

The tax law changes in 2003 lowered the tax rate on qualified dividends to the same level as long-term capital gains. This means that corporations can now pay higher dividends without increasing the tax burden for investors. Therefore, a higher dividend policy is more favorable under the changed tax law as it can attract more investors and enhance shareholder value.

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