Aggregate Payout Ratios
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Need explanations as to how each of the entries below would tend to affect aggregate (the average for all corporations) payout ratios, and other things held constant:
a. A decline in investment opportunities
b. A rise in interest rates
c. An increase in corporate profits
d. Permission for corporations to deduct dividends for tax purporses as they now do interest changes
e. A change in the tax code so that both realized and unrealized capital gains in any year were taxed at the same rate as dividends.
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a. A decline in investment opportunities
Increase; as the firms would have fewer opportunities to re-invest the profits - thus dividends woild increase
b. ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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