Should a stock split create value

Reference no: EM131241520

1. If the stock price is not expected to drop from the cum-day to the ex-day, what is the marginal income tax rate?

2. What is the implied tax rate suggested by the real-world cum-/ex-drop?

3. Should a stock split create value? Does it?

4. Do stock price announcement responses to dividend initiations (or dividend eliminations) tend to be under reactions or overreactions?

Reference no: EM131241520

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