--- john hull <[EMAIL PROTECTED]> wrote: > If the price of a stock is the PV of the dividend > stream into the future, then should there merely be a > one time jump in the value of a stock as a result?
No. There is also a supply-side effect from cutting the marginal tax rate, from less uncertainty about the company as it shifts to less debt and more equity, as well as more investor confidence when the profits are sent to the shareholders rather than retained by possibly theiving executives. Fred Foldvary ===== [EMAIL PROTECTED]
