One of the main arguments affecting dividend policy is the tax disadvantage associated with dividends being taxed at a higher rate than capital gains. However, different groups of shareholders have different tax rates and exemptions. Hence, it is argued that it is the majority shareholder group’s desires that should be met by a firm when making dividend policy decisions. From the breakdown given in Table 1, it seems as if individual shareholders dominate the scene. But within the individual shareholders group, the composition of investors’ preferences would differ as well. Thus, there isn’t enough information to state what sort of dividend policy would be best suited for New Wave.