What advantages to the corporation and the stockholder do dividend reinvestment plans offer?© BrainMass Inc. brainmass.com March 4, 2021, 8:44 pm ad1c9bdddf
Since, dividends have a tax disadvantage i.e. marginal rate of tax on dividends is much higher than capital gain tax, the dividend reinvestment plan will help the stockholders in reducing ...
This post evaluates the dividend reinvestment policies in terms of their value to the investors. The advantages and disadvantages of this management action is evaluated under perfect markets as well as in imperfect markets.