Another firm, called Robbem Power & Water, an established public utility company, has been paying dividends for the past 20 years. This year Robbem also announced that it will increase its dividends by 10%. Which class of investors is more likely to be pleased by Robbem’s dividend announcement?
a. Investors with low tax rates who depend on current dividernd income for Iiving expenses.
b. Investors with high tax rates who don't depend on current dividend income for living expenses
Answers: 1
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