We analyze cumulative abnormal returns (CARs) around key events leading up to the passage of JGTRRA to determine whether a reduction in the individual tax rate on dividend income affects stock prices, and if so, whether that effect differs for different groups of firms. In general, we find that...

This project requires students to analyze and make a client recommendation for the most tax-effective saving option, comparing a traditional individual retirement account (IRA) versus Roth IRA. Students analyze the two alternatives and track growth as well as projected tax liability over the...

We hypothesize that the 2003 decrease in individual tax rates on dividends and capital gains should have been followed by a decline in the cost of capital and increased volatility, especially for dividend paying firms. We observe a significantly positive increase in the volatility of daily...