Relationship between the tax policies and dividend policy

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In the modern business world, there exist a lot of controversies regarding taxes by the federal government and dividend policies by organizations. Financial theorists such as Brennan (1970), Masulis & Trueman (1988) have stipulated that taxes affect the organizations corporate dividend policy but this does not always apply especially in the banking industry. What do you think is the relationship between the tax policies and dividend policy?

Reference no: EM131672200

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