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Discuss how different investors tax status might affect their estim

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Discuss how different investors\' tax status might affect
their estimate of an asset\'s value, and how a change in
tax laws-liks the 2003 law that lowered the maximum
personal tax rate on dividends from 38.6% to 15%-might
affect the values of different types of investments.
Solution
Answer:
Any change in tax laws impact the financial services
industry. the reason being the change in demand pattarn of
the asset and because of it change in price of the that
asset. For example if the tax rates would get lower in that
case the surplus that the individual may get would get
invested into some risky investments like equities too
making a good value for these assets.
But on the contrary if reverse happens than people will
tend to park their funds in some stable investments like
FD\'s or some other bank deposits. This tendency refects
the impact of taxes on investments.

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Discuss how different investors \' tax status might affect their estimate of an asset\'s value, and how a change in tax laws-liks the 2003 law that lowered the maximum personal tax rate on dividends from 38.6% to 15% -might affect the values of different ty pes of investments. Solution Answer: Any change in tax laws impact the financial services industry. the reason being the change in demand pattarn of the asset and because of it change in price of the that asset. For example if the tax rates would get lower in that case the surplus that the individual may get would get invested into some r ...
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