As they pay interest at the rate of 4 per cent and 4.25 per cent on deposits, the savings banks must seek 'profitable' investments for their capital, they must deal in bills, mortgages, etc. The boundaries between the banks and the savings banks 'become more and more obliterated.' The C...
Furthermore, the simulation clarifies the trade-off between opposing effects, i.e., tax and interest-rate effects, and the overwhelming impact of capital gains taxation. Apart from tax parameters, we identify the dividend rate and the point in time of selling the shares as important value ...